Gift Deposit Mortgages...??

FinanceDummy

So I've heard there is such a thing known as a 'Gift Deposit Mortgage'... I've tried to see what it's all about but it's actually quite confusing.

I basically have the opportunity to purchase a house actually worth £250K for £200K... through a close family friend however she is not a relative and I am not a tenant which seems to be the only categories you must fall in to be granted with a 'Gift Deposit Mortgage'.

I have a 15% deposit on the £200K but of course the rates are still so high, I only need to borrow £170K with my partner which is do-able but of course would like the best possible deal.... which actually seems to be for those with a 25+% deposit.

I have also been told to declare the value at £227K but actually pay £200K with this stated in the sale contract providing the seller agrees... can this be done???

Any feedback to point me in the right direction would help... believe me!!!

Robert_Sterling_3

A "Gift Deposit" must be a genuine gift which you do not have to pay back.
So if you have a friend who will make you a gift of £50,000 off you go.
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I Googled up a no fee broker who advertises Gift Deposit Mortgages. I do not provide a link for obvious reasons.
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I have read of scams where a builder with lots of flats in a new block "acts" as the giver of gift deposits related to overpriced flats. Once a few people have bought flats at the asking price but making use of a Gift Deposit then when surveyors are assessing the value of the flats and look at the price paid on the Land Registry Site for comparison purposes they value the flats close to the overpriced rate at which they have been sold. Whether I invented this scam myself or read about it in the press I am not sure.
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For myself I would not look for a Gifted Deposit Scheme.
If it looks too good to be true ......
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However since you asked .....
Google up "Gifted Deposits" then make up your own mind.

I have made up mine.

FinanceDummy

Thanks! Any thought on the 2nd option... I have also been told to I can declare the value at £227K but actually pay £200K with this stated in the sale contract providing the seller agrees... can this be done???

Robert_Sterling_3

I know of nothing that can compete with a friend giving you £50,000 as a gift.
You have to change your plans to get something that costs £200,000 not £250,000.