for example my broker says the mortgage company could do another credit credit when they transfer the money over to my solicitor...so if i borrowed 5% would it show up on my credit check if it was borrow pretty close to the date of exchange/completion??
or would it be worth taking the risk????
2006-11-20 21:05:25 · 14 answers · asked by willywinkle 1 in Business & Finance ➔ Personal Finance
Even 10% is way too little to put down. The broker just wants a commission.
One key to financial happieness is to live within your means.
2006-11-20 21:20:40 · answer #1 · answered by Sanmigsean 6 · 1⤊ 0⤋
Hi, I used to sell mortgages and have seen people do this but to be honest, this was only done in the most desperate cases.
Your card borrowing does show up on credt agencies scoring so there is a risk that drawdown could be refused at the last moment.
As others have stated your broker should be better at getting you a mortgage as there are a number of lenders out there who will give you the 95% you require.
I understand that may affect your current mortgage rate but you do not have to keep that mortgage forever (given that there are no tie-ins; but they mormally only last a couple of years maximum). Lenders love a good payment history, so if you keep up your repayments for 12 months there will be a long list of them ready to remortgage, pay the fees and welcome you with a better rate.
Tell this broker to take a hike and, most importantly DO NOT PAY THEM ANY FEES! They get paid commission by the lender.
2006-11-21 05:42:01 · answer #2 · answered by martinf1805 1 · 0⤊ 0⤋
This isn't a great idea, not only because you can't take the interest deduction on it but also because it will negatively impact your credit and will be at a huge APR because it will be a cash advance. Why not get a 2nd mortgage. It's pretty common. You get a 90% regular and 5% 2nd and 5% down. If your broker isn't suggesting this you might want to look for a new broker.
2006-11-21 22:31:22 · answer #3 · answered by personal_finance_101 3 · 0⤊ 0⤋
ooooooo......... that's a lot of debt to get yourself into..... a mortgage and a big loan too...... the biggest risk u are taking is whether or not u can afford to live life comfortably and afford the above expenses...... u really don't want to risk bankruptcy or losing your home...... i guess that they could do another credit check when they transfer the money, but i've never had that happen when i've been buying a house....... i guess that's the risk u take..... but please, sit down, do the maths..... if u are only going to be able to scrape by on your payments, then i would advise that u wait til u have more money saved up. u never know what could go wrong. what happens if the interest rates rise ? (and they are predicting that they will) could u still afford the payments ?
2006-11-21 05:19:09 · answer #4 · answered by Anonymous · 1⤊ 0⤋
it is possible to do but the interest rate would be really high. Why not look at a 95% mortgage, they are about and even if the interest rate is slightly higher than a 90% mortgage, the monthly repayments would work out less than if you was to get the extra 5% on a credit card!
2006-11-21 05:09:47 · answer #5 · answered by Mizz Julie 3 · 0⤊ 0⤋
Here is a contact that can possibly help with that 95% loan..
Manolo Borja, Senior Account Executive
Aapex Mortgage Corp. and Modern Tech Industries, Inc.
366 North Broadway, Suite 206
Jericho, NY 11753
(516) 345-1136 Phone
(516) 706-7700 Fax
Email: nolo430@aol.com
Websites: www.aapex.com
www.18776loanyes.com
2006-11-21 16:06:49 · answer #6 · answered by Steven R 1 · 0⤊ 0⤋
If you have access to a 401K you could borrow from that. If you have an IRA you could take a distribution of up to $10,000, pay the tax but no penalty. You could ask your family for a gift loan.
Don't borrow the rest since that will show up on your credit report and might kill the deal if your total debt with the mortgage is too high.
2006-11-21 08:26:47 · answer #7 · answered by waggy_33 6 · 0⤊ 1⤋
It is NOT worth the risk, but not because of the credit checks. It's not worth it because a 95% (which it would be ...) mortgage is a huge risk and is so much more expensive than renting.
Don't fall into the Property Ladder dream until you can afford it.
I have 2 properties and one is a 20% mortgage and one is 27%.
I wouldn't wish a 95% mortgage on anyone these days ...
And remember, your broker is only after his commission. He doesn't care if you live or die.
2006-11-21 05:14:53 · answer #8 · answered by Ian69 4 · 1⤊ 2⤋
As you have the deposit of 5% why not use a product that gives a 5% cash back as the balance of deposit. It does not change the rate hardly at all.
If you use a credit card for the balance of deposit it is strictly speaking fraud, unless you disclose it on the application form. If you disclose it on the form you wont get the mortgage.
2006-11-21 05:29:57 · answer #9 · answered by duncanjfield 2 · 0⤊ 0⤋
Your broker's job is to look at your overall finances and recommend the best solution. He's obviously failed. I suggest you try another broker who can come up with a more suitable loan solution.
2006-11-21 05:12:18 · answer #10 · answered by Anonymous · 1⤊ 0⤋