Can you get a mortgage if the deposit is tied up in probat

[askyfullofstars]

My mum died in July this year, her probate is nearly all sorted and the conveyancing has just started on her property.

Before she died, she explained to us all how what we should do with our shares of her inheritance. Obviously she said we weren't tied to it but it would make her happiest. She explained to my husband and I that she wanted us to use our share as a deposit for a house, as we had started saving for a deposit a few years ago, got quite far and then DH got made redundant and so we ended up going through quite a lot of our savings as the job market was slow, luckily we got back on our feet but are now stuck in the rental trap (ie cant save for a sizable deposit due to rent/living costs - couldnt bunk in with family to help save as they all live too far away). I think it was a lovely idea.

So, Estate agent reckons that as no chain either way we could be completed and done and dusted in 4-6 weeks.

I did have a bit of a look to see what kind of properties are about round here and I have seen one that I really like. Its not big or extravagant or anything, but it is big enough for what we need, with a beautiful kitchen and a playroom for our son. I had even considered viewing it or speaking with the agent/mortgage lender at the bank about our situation to get a bit of advice as Ive never had to do this before.

When I asked the EA we are selling my mums property with for buying tips, she was very helpful but did state that as I have the grant of probate and my mums/financials/a house in conveyancing that we should be able to secure a mortgage or at least an agreement in principal, based on the fact that the money for the deposit will soon be paid, rather than wait for the money to be paid but this surely cant be right. Her reason being that the money we have tied up in probate is our equity. No different to us having our own house going through a sale.

Any advice would be welcome.

(putting aside the moral argument raging in my head that even though it is the sensible thing to do with my inheritance, and its what my mum wanted, I hate thinking about it, it almost makes me feel dirty in a way I cant explain, it just feels wrong).

[Debt Camel]

Re: Can you get a mortgage if the deposit is tied up in probat

I think your instincts are right and the EA is talking through her hat. A lot could fall though with the sale of your mum's house.

Wait till you get the money, then have a lovely time looking for a place that will be great for you. It will be a pretty good way to remember your mum!

[des8]

Re: Can you get a mortgage if the deposit is tied up in probat

IMO there is no reason why you shouldn't go ahead with the purchase, as long as everyone knows your deposit is tied up, and you will not be able to complete the purchase until the funds are released.
If there are sufficient liquid funds in the estate there is no reason why the executors cannot make an advance to you before final settlement of the estate if you need the deposit urgently.

And don't feel bad about using your inheritance.... it is what your mother wanted and seems a very sensible course of action.