New Build Mortgage & Builder Deposits

jay1978

Myself and my partner have seen a new build property for £159,950. Only last week the builder was offering it's own shared equity scheme, so we'd buy 85% and the builder would keep hold of 15% for 10 years, or until we sell. We have £8k saved and we had a mortgage agreed in principal, however the builder has stopped the shared equity scheme with immediate effect, so we've had to go back to the drawing board.

The builder is offering 5% gifted deposit, add that to the £8K we already have, and we have an effective 10% deposit. The problem is, every lender we speak to says we need 15% on new builds. Does anyone know of any lenders that will look at a 10% deposit on a new build (with 5% being via gifted deposit)?

We're at our wits end, if we could stretch to 15% then we would, but it just isn't possible.

Thanks in advance for your advice.

opinions4u

jay1978 wrote: »

The builder is offering 5% gifted deposit, add that to the £8K we already have, and we have an effective 10% deposit. The problem is, every lender we speak to says we need 15% on new builds. Does anyone know of any lenders that will look at a 10% deposit on a new build (with 5% being via gifted deposit)?

Halifax used to be more generous with their approach to this sort of scheme, but no idea if they still are.

I think you also need to be realistic about what a gifted deposit is. It isn't a gift. It's a way of hiding the real value of the property (which is £8k less than the figure quoted).

Not saying you shouldn't buy. But do know that the true value of the property is less than the sale price.