Moving - Deposit help!

[evo180]

Hi all,

To briefly explain I bought a flat just over a year ago of which my family helped fund a larger share of the deposit. I'm now looking to move into a house with the girlfriend but I need my deposit share, possible even a little bit more to fund it.

Is there anyway around this without selling the flat?

In an ideal world it would be nice to rent the flat out as that would easily cover the mortgage payments.

Will answer any question if this is too brief!

[ComareTheMortgageMarket]

You could do a 'let to buy' on your existing property which is basically a remortgage on a buy to let basis. If you are a first time landlord then you will be restricted to 75% loan to value so you would need to keep equity of 25% in this.

[evo180]

Originally Posted by ComareTheMortgageMarket

You could do a 'let to buy' on your existing property which is basically a remortgage on a buy to let basis. If you are a first time landlord then you will be restricted to 75% loan to value so you would need to keep equity of 25% in this.

Which would mean I could only take about 7% out to help towards the mortgage which is only about 10k, I would need neared 25k and the only way to do that is to sell me car - But that is an idea. Thanks.

[ComareTheMortgageMarket]

You could approach your existing lender and see what their policy is as they would more than likely give you a consent to let certificate, although Im not sure whether they would allow you to take a further advance at the same time to raise the deposit for the new proposed property. Its always worth a call as you dont have to commit to anything.

[New Homes Expert]

Best to get sell and pay back yopur familly.
Why do you think you can profit from using their money?

[ComareTheMortgageMarket]

The parents deposit money was perhaps a gift and they may be quite happy to leave it in the property to assist evo180.

[evo180]

Originally Posted by New Homes Expert

Best to get sell and pay back yopur familly.
Why do you think you can profit from using their money?

It wasn't quite gifted completely it was to get me on ladder quicker and at a lower mortgage bracket. I do have to pay them the interest they are losing out on each month and they don't exactly miss the money it would only be generating interest somewhere else! When sold they will also gain a larger share of the profits as they have a bigger share.

Obviously selling is ideal but will slow us down!

What do I think I can profit from.

Lower interest rates which in tow obviously means lower mortgage payments

[ComareTheMortgageMarket]

If your family are happy to let you keep the deposit remaining in the property then there is no problem with that at all. Makes sense to me if you can afford to keep your existing & generate some rental off it too.