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"no deposit" house? does it mean what it says?
sigrid
Posts: 13 Forumite
:money: :money:
is not in debt and never will be as I am in possession of a brain!
0
Comments
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Probably not!
What they are doing is over valueing it by the amount of the deposit and more!
ie the price on the board is 100k they sell it to you for 100k and give you 10k as a deposit so you can get a 90k mortgage. This offer is likley to fall to bits when your mortgage company value it and find out about the vendor gifted deposit.
But it is better if you offer 90k with your own 9k deposit so you have a 81k mortgage.
The house by the way is only worth 90k in my example.0 -
I guess your talking about a new build?
Ive been looking at a few recently and quite often there are different schemes where the builders are saying 'Pay only 75%' or 'Zero Deposit Required!'
Basically they are tempting you in by making it look cheaper... and it is (to start) but often you either pay the remaining back by 'renting' it, or its a loan you dont have to pay back for 5 years and you get some interest free time.
Either way, if you take advatage of the deal your very unlikely to be able to negotiate down the overall price of the house and will only work out if you have zero deposit or are struggling to get on the ladder.
Meaning that if you like it and can afford it, then dont use the scheme and go and negotiate the price and get a good deal!0
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