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Do You Still Have To Pay A Deposit
kelise
Posts: 67 Forumite
we are looking into buying a new house which offers first time incentives.
You pay for 75% of the house and they lend you the remaining 25%. So you dont have to pay rent on the 25% as it is not a share scheme. You just pay the 25% back over 10 years or when you sell.
Does this mean we do not have to a deposit of 10% as we are only borrowing 75% of the property price.
Thanks
You pay for 75% of the house and they lend you the remaining 25%. So you dont have to pay rent on the 25% as it is not a share scheme. You just pay the 25% back over 10 years or when you sell.
Does this mean we do not have to a deposit of 10% as we are only borrowing 75% of the property price.
Thanks
0
Comments
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I think you're borrowing the full lot even if you don't think you are.0
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There was an article on this in one of the papers at the weekend. I think one or two lenders, possibly the Halifax, will allow you to borrow 75% of the value with no real deposit. Try the mortgage board for further advice.
Its a risky strategy as you need to be able to afford the other 25% within a set time frame.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Basically it is a bit of a gimmick.
If you can only afford to borrow 75% of a properties value then perhaps budgeting a little lower might be an option? Hold on, save as much money as you can and keep an eye on the market because house prices are still falling in real terms and will be for some time yet.0
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