So close to affording dream home!

NeptunesMoon

Alright folks, my friend has been looking for a house for about 2 years. Her needs are quite specific and very few houses for sale meet them. Her details are:

First time buyer
Age group: 25-30
Single, no children, no outstanding loans or debts.
Salary: 45k (3.5 x = 157,500)
Savings for deposit and fees: 25k
Mortgage Approval amount: 180k (plus deposit).

So as you can see, she's already been given an exception from the bank and allowed a higher mortgage than is typical. There's a house on the market now that went on under 200k, but already has offers above the 200k and will probably sell for about 220-230.

She'd love to get it but of course, the 20/30k is an issue. She's an incredibly responsible person and very good with money (she saved the 20k very fast after deciding she'd like to buy).

Providing of course nothing drastic happens and she wasn't able to work for example, she should be able to pay back a mortgage relatively quick.

We're trying to figure out ways she could come up with 20/30k in the next few weeks. She was thinking about a credit union loan, but I saw threads here strongly advising against it if you're looking to then use that money to buy a house as the mortgage lender may withdraw approval on the discovery of the loan.

She doesn't want to borrow money off family or friends and wants any borrowing to be done through lending institutions as she doesn't want to feel indebted to anyone personally.

She wants to buy the property fully in her own name and of course be the one to pay it back. She has expressed interest at the thought of a guarantor but I don't believe they accept these anymore on loans or mortgages?

I'm not in a position to get mortgage approval for anywhere I'd be interested in living at present and probably wouldn't be for a number of years. I do however have the ability to be able to lend about 15K. I completely trust her to pay it back so no issues here. Another option I was thinking, was what if I went on the mortgage with her and with the approval I'd get, along with hers, it should easily be enough to secure the sale.

If I did this, I assume this would use my "first time buyer" privilege when it comes to me buying my own place meaning I'd need to save double the deposit before considering anywhere.

Is it possible that this can be done without any responsibility of paying the loan back to be put on me, and to have her have full ownership of the property. She just doesn't like the idea of anyone else having their name on it. So I'd be effectively using my salary to buy it together with her, but she's paying back everything, it's all in her name and I have effectively done nothing other than sacrifice my first time buyer privilege.

If anyone can share some advice it would be amazing. Cheers!

Trish56

Her only option is to get a gift.