for once some serious advice needed please :-)

mortgages.........again.........


some may remember me posting a little while back that i had a 10% deposit on my next property.

various orgers responded with some good advice and how it may be better to rent / wait untill I had 20% deposit.

so, this got me thinking.......been a while since i got my brain in gear so was good for the soul!, anyways I had a thought....I have at least 10% already, plus whatever we may or may not get from the sale of the flat. if i could get a private investor to also put in 10%, and i pay them back in 5 years time, then this would give me at least 20% deposit and access to a better deal.

so i got off my ass and found a private investor...he is willing to loan 10% of my next property, there are however stipulations/proviso's...such as

a legal contract be drawn up stating the repayment date.

that if something went wrong (say i was reposessd) that he would be next in line for any payment from the sale of the property, so mortgage payed off first, then him then us....

he wants it to be official that he owns 10% of the property (where can i look / read about doing this, do i put him on the deeds / land registery?)

and finally would the mortgage providor worry that 10% is coming from a private investor?

ive googled various things and cant see any info on this sort of thing, i know the logical step is to speak to the mortgage providor / IFA / Solicitor.

but before i do this and possibly ruin my chances does anybody know of a good site i could get some relavent info from???

Thanks in advance

Dappa

PS, im doing this on a risk basis, hoping that property goes up a little within the next 5 years, I can then remortgage part of the equity and pay the investor back. (if house prices have gone up, i pay back 10%of the value at that time, if they go down, i only pay back what was initially invested).

There are goverment schemes to help first time buyers; me and maria are considering this. We can get a morgage with 10% deposit with the halfax maybe, but not many of the high-street banks will do it, and if they do they wont give a big enough morgage for the types of property we want.

We'll just keep on saving I suppose

Have you considered the goverment schemes?

I haven't a clue about the legalities of it but I can't see why the mortgage provider would be worried about you having a 'private investor'. As far as they're concerned they'll just be loaning you less. Your solicitor should be able to tell you the ins and outs of it.

I think your private investor's mad though!

Originally Posted by alpinestarhero

There are goverment schemes to help first time buyers; me and maria are considering this. We can get a morgage with 10% deposit with the halfax maybe, but not many of the high-street banks will do it, and if they do they wont give a big enough morgage for the types of property we want.

We'll just keep on saving I suppose

Have you considered the goverment schemes?

we did look into the various schemes, my gf works for the nhs so i looked into the keyworker scheme but that was mainly for nurses, and shes a cardiac physiologist...
we arnt first time buyers..well i am but she isnt so we not eligable as a couple, one of the government things was they lend you part of the money, up to 40% i think it was, you dont pay anything back for 5 years, then you start to pay it back...this worked out so much more expensive than the investor route. good luck to you two fella

Ah I see, i'll bear that in mind. I would prefer if it was just me and my girlfreind as the only "owners" of the house.

Good luck to you too. I think anyone buying a house needs all the luck they can get. And a lottery win!

OMG, be careful if you are planning to give anyone any rights over your home. Remember - to them it's an investment and they will want it back. To you, it's your home, and if they kick you out, you stand to lose not just money. It's not to say that you shouldn't do it, just be aware of the risks involved. Be careful. Please.

PM me if you want.

Ed

[Biker Biggles]

Not what you want to hear Im sure,but Id stay put where you are now until you can actually afford a new place with no "constructive accounting"to cobble the deal together.There is actually a very good reason why they are starting to insist on much larger deposits and you mess with that at your peril.No one in their right mind would borrow up to the hilt now and the lenders are well aware of the risks now.They should be as they have been badly caught out just recently.IMO we are in for a very long period of stagnation or depression and relying on the "green shoots of recovery" to sort out your debt in a few years is optimistic.