vendor deposit

Lewber

i am buying a house that is valued at 79950 i have had an offer accepted for 62500 and was approved for a mortgage with me bank as long as it 20% less the asking price, they then said i coudn't have a mortgage as there was a small sentence which meant they would only give the mortgage if i was buying from family (which i was'nt, but why should that matter) my offer is still accepted and i could get around 4000 for a deposit, can i use the remaining equity for a vendor deposit, if not can i do anything at all to progress, any help would be greatly appreciated, also i am a first time buyer

cheers in advance Lewber

silvercar

The thought process is that if you are buying from family then it is possible that they will sell it to you at below market value, if you are buying from a stranger then they will be getting the best price they can. So if your offer is the best that they can get then that price is the true market value. Any loan-to-value deals need to be based on the true market value.

You are trying to buy a house worth 62.5k with a 4k deposit, this is a LTV of 93.6%.

Some lenders allow vendor gifted deposits from non-family, Halifax used to accept upto 5% as a vendor gift, not sure if they still do or who else does.

Another thread discussing this topic here:
http://forums.moneysavingexpert.com/showthread.html?p=19957993#post19957993

Lewber

soory if this sounds daft but would it be allowed if i were to by a house from someone not a relative but, who was a good family friend, i think i know the answer but i might as well ask

Comyface

Silvercar (and Lewber), Halifax do still accept vendor deposits of (max) 5%.

Obviously, the valuer needs to be aware of this before he goes out and he'll factor that into his report, so it may not help anyway.

poppysarah

So is the 4k the deposit you've saved?

Robert_Sterling_3

To a casual observer, e.g. me, it looks as though the owner is willing to accept £62,500 for the house.
The owner accepts that that is the best he can hope for.
You know it makes sense.
It can not be worth £80,000
You will need a deposit of £12,500.