Drawdown of % of mortgage for deposit?

C

CCOVICH

Registered User
Messages
8,826
A colleague is in the process of buying an apartment. 100% mortgage with UB through a broker. The completion date is not until early next year, so not possible to get a bridging loan (these are usually for not more than 3 or 4 months AFAIK). According to the broker, UB are willing to let him drawndown 20% of the loan value now to pay the deposit payable on signing.

This seems unusual-where is the security for the 20% as the apartment is barely past foundation stage. I presume that my colleague will have to provide UB with something by way of security? Has anyone any experience of this type of situation before?

P.S. I'm not necessarily looking for advice here, I don't really have any basis for second guessing my colleague's broker, but I just didn't know something like this was possible?
 
Amazed to hear this. Can't believe that such a facility would become generally available since the security issue would be overwhelming. Will they advance the money at the mortgage rate?

When I think of the times I've sweated blood raising those deposits (and, as you mention, paid bridging rates for the privilege).
 
I'm not sure about the rate, but yes the security aspect is puzzling. I will remain sceptical, even more so due to the fact that he is dealing with a broker (sorry guys;)) than with UB directly. But maybe it is the broker has been able to get them to do this kind of deal?

I don't recall paying excessive bridging interest last summer (just over €100 on €15,000 for around 3 months if I recall correctly, but I guess it's a lot more if you need 100% for any period of time).
 
Its like UB are desperate for the 'ole business. Sure if they give you an unsceured facility ..they may not have said at the 'mortgage rate' ..and if the hoors are like Anglo they will extract their pound of flesh. Given that theor parent is RBS I would be thinking this little piece might be at 8%! Roll on the RBS share price!
 
Hi CCOVICH

I was just wondering how you friend managed to get 100% finance - is their occupations one of the professions listed by UB as eligible for 100% mortgage or is it an investment property or something ?

Thanks.
 
You must log in or register to reply here.
Back
Top