vendor deposits

emmahane

advice needed please!!!
We have seen a property that we can afford mortgage wise but dont have enough deposit to pay vendor what they are asking, is it legal to ask vendor for deposit and if so how do we go about it?

thanks

Trying_to_be_good

There are vendor gifted deposits, but it opens up a mortgage minefield.

Your mortgage offer will be dependent on you paying over a deposit (and therefore giving a loan to value ratio, LTV). You need to have this money plus the buying fees.

The easiest way is to only offer the vendor what you can afford.

emmahane

yes but surely if the vendor is giving us deposit the bank doesnt need to know as long as they get their deposit

herbiesjp

emmahane wrote: »

yes but surely if the vendor is giving us deposit the bank doesnt need to know as long as they get their deposit

Wrong - the bank does need to know where the deposit is coming from I'm afraid

Robert_Sterling

Suppose the vendor really wants £90,000 for his house.
Suppose you are willing to pay £90,000 for the house.
Suppose you both agree that you will say that you are paying £100,000 for the house to the lender.
Suppose the vendor gives you £10,000 to use as a deposit.
The vendor and yourself would have committed a crime of conspiracy to defraud.
As with all crimes you might get away with it.

Google up "Gifted deposit fraud" .
You will bring up more than 100,000 links.
Lenders are well aware of this scam.