Vendor Gifted Deposit?? Which Banks Allow These?

scottburke

just been to see a mortgage advisor today. we were trying to buy our first house. but as our AIP was cancelled last week with the RBS, as there not doing 95%LTV anymore, she said our only hope is to do a vendor gifted deposit for the other 5% taking us upto a 90% LTV mortgage. which banks deal with these?? i asked the advisor if she dealt with the whole market, which she said yes to. but is there any banks out there that do accept these vendor gifted deposits but wont deal with brokers??

secondly, i have heard that the halifax are releasing new rates on fri for new fixed rate mortgages. are these likely to be lowered somewhat (from the 7.14% we where offered on mon)?? and will the other big lenders follow suit??

any advice or views would be welcomed. thanks

Tiddler_2

Halifax are changing their deals from tomorrow.

Halifax are one of very few companies who will allow vendor gifted deposits these days, but they also allow you to go ahead with just 5% deposit if you are a FTB & go direct (only do 90% ltv via brokers). Obviously the advantage of a vendor deposit is that you would have 10% deposit and therefore avoid having to pay for a Higher Lending Charge, and won't have to move your banking to the Halifax aswell.

The downside of the Vendor deposit scheme is that the valuer may not value it at the full price, particularly if you are paying the price it was marketed at

FraudBuster

Mortgage valuers currently hate new build flats and will down value them.

scottburke

Tiddler wrote: »

Halifax are changing their deals from tomorrow.

Halifax are one of very few companies who will allow vendor gifted deposits these days, but they also allow you to go ahead with just 5% deposit if you are a FTB & go direct (only do 90% ltv via brokers). Obviously the advantage of a vendor deposit is that you would have 10% deposit and therefore avoid having to pay for a Higher Lending Charge, and won't have to move your banking to the Halifax aswell.

The downside of the Vendor deposit scheme is that the valuer may not value it at the full price, particularly if you are paying the price it was marketed at

do you know of any other than the halifax that allow vendor gifted deposits?

minimike2

I would usually place vendor gifted with Halifax / Bank of Scotland.

5% is max they will do (they say they will do10%, but they downvalue by the extra if they get applicaitons at 10% gifted!).

scottburke

minimike2 wrote: »

I would usually place vendor gifted with Halifax / Bank of Scotland.

5% is max they will do (they say they will do10%, but they downvalue by the extra if they get applicaitons at 10% gifted!).

thanks. do you know of any others though? we ve got a decent deposit (5%ish-12k) but looking to top it up with a vendor gift of 5%. house is up for 249.

minimike2

There used to be a few but i cant think of any others that do it now.

The problem is there is a difference between lenders saying they will do it, then actually agreeing to it.....this is why I place cases like this with Halifax as they are really the only "safe" (as safe as you can be these days anyway) when it comes to vendor gifted.

Tiddler_2

Ipswich building society still do it but they are not offering anything above 75% LTV at the moment (except shared ownerships)