From: "Andy Laurence" 
Newsgroups: uk.finance
Subject: Re: Loan for Mortgage deposit or 100%?
Date: Wed, 3 Mar 2004 18:43:06 -0000

Ric wrote:
> My girlfriend and I are looking at buying our first home.  We are both
> graduates so would probably be able to get a 100% mortgage, but I was
> wondering if it would make more sense to get a loan and use it as a
> deposit instead.  I have some credit card debt (about £4000) and am
> considering getting a loan to pay this off.  Would it be worth my
> while to get an £8000 loan and use half to pay off my debt and the
> other half as a deposit?  We are looking at houses around the £80,000
> region.
>
> Any thoughts/suggestions?

My first thought would be about where you're getting the solicitor's fees,
stamp duty, etc.  Bear in mind that's a few quid more on top of your
purchase price.  You'd be looking at £800 stamp duty, about £600 solicitors'
fees, and other bits'n'bobs that are completely escaping my mind ATM.  Don't
figure on any change from £1500.

Cheers,
Andy
-- 
http://www.andylaurence.co.uk
http://projects.andylaurence.co.uk