Vendor/builder gifted deposit

TrueBlueAngel · 23 April 2007 at 5:05PM

My husband and I want to get on the property ladder but have found we have a default on our credit history. We were told we would not be able to get a 100% now but could try for a property with a vendor/builder gifted deposit. As we dont have savings and with little means to save with a family, how do we go about looking at vendor/builder gifted deposits? I have emailled estate agents (none of whom got back to me) and property builders (none of whom do or have even heard of a builder gifted deposit). Am I missing something, need to do more or will we never get on the property ladder?
Thanks.

Mr_helpful · 23 April 2007 at 5:20PM

Gifted deposits come in a variety of forms. The deposit may be a gift from family or elsewhere but it should be a gift not a loan ie you dont have to pay it back. Vendor deposit is where the vendor pays the deposit for you and a builders deposit is where the builder or developer pays the deposit for you. these are often the easiest to get with big developers like Barretts giving deposit paid homes. Usually 5% is ok to deal with but if you can get larger ones there may be some lenders willing to help.
Estate agents dont often help with these but there is plenty of information from the search engines on the internet
How large was the default and has it been satisfied, who did you apply to for the 100%

toonfish · 23 April 2007 at 5:20PM

nearly every new build development will do builder gifted deposits but beware. All they are really doing is selling th ehouse at an inflated price and if you come to sell it might not be easy to get the same price for it.

Very few lenders will look at vendor gifted deposits.

A minor default, depending on the details, may not preclude you from all the 100% deals

TrueBlueAngel · 23 April 2007 at 5:31PM

We do believe it to be a minor default and have requested an Experian file to see what it is and to settle it asap. We are puzzled by it but it needs to be dealt with. We have applied to various online brokers rather than high street banks. We're new to all this and need as much advice/help as possible.

Mr_helpful · 23 April 2007 at 5:38PM

The best thing to do is wait until you have your credit check and then discuss with no fees independent broker. There is a chance the default may not even be yours these days with identity theft. I have known people with small defaults get 100% mortgages but it is worth learning about gifted deposits as well. Often experienced buy to let investors know a fair bit about them so its worth hunting for info around the internet.

katyjarvis40 · 23 April 2007 at 6:02PM

Have a look on smartnewhomes.co.uk and see what builders are in your area and contact them

For our first property back in 2001 we had no savings what so ever, we used a gifted deposit of 5% from the builder, the Abbey National were fine with this, my partner also had a few defaults at the time also. Try the Chelsea who are really helpul too, we are using a gifted deposit for our new house, and they haven't blinked an eyelid, also they ignore small defaults over three years old.

TrueBlueAngel · 23 April 2007 at 8:23PM

I've trawled the net looking at vendor gifted deposit and theres lots of advice as to what it is. But not how to go about it (unless I'm looking at it wrong). Do we just go round estate agents asking about properties that might have a vendor gifted deposit or do we look at brokers?

Vendor/builder gifted deposit

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