Need peoples opinions - just had a phone call form the buyers of our house...

jodiebabes

Hello,

We accepted an offer after our house had been on the market only a week of 76k (it was advertised at 79k) in March.

We were aware that the buyers were waiting on the governments home buyers scheme (for their 10% deposit) so we knew that it could take some time. Anyway, at the beginning of June we were informed that the scheme had now ran out of money.

Since then our buyers have managed to find this 10% deposit from a family loan. But when they have gone to try to get a mortgage they are now struggling because there credit score has been affected with the amount of mortgages searches they have had.

They have just rang us to state that when buyer a house of this value with 15% deposit, you dont need a credit check (is this true?). Therefore they have mentioned putting the sale of our house through at 80k. Meaning with their 7600 deposit plus our 'gifted' deposit of 4k, they have 15%.

Has anyone else heard of doing this? Is it legal?

I have just been speaking to my partner about it and I am concerned that when the house is surveyed they may say it isnt worth that muc (and if it is shouldnt we be selling it for that price?).

What you all think?

pinkshoes

It sounds really dodgy to me!

You get a credit check if you're borrowing £5k for a car, so of course they'll be credit checked. They'll also ask where the deposit came from...

If I were you, I'd put your home back on the market again, and only accept offers from people who have a mortgage offer in place!

silvercar

Its legal if it is declared to the lender. If it isn't declared then it is mortgage fraud, obtaining money by deception. Though the criminal act would be on the part of the buyers not on yourselves. The very real risk is that either the lender finds out about it late in the day and withdraws any mortgage offer, or that the valuation reflects that the vendor gifted deposit is not real money.

I'd remarket the property. If they come good then fine, otherwise you are wasting time.

jodiebabes

It is back on the market.

We are not quite in a position to move as of yet so when we accpet the offer we knew we would be waiting and could have time to save and view other houses. It has been a little too long waiting now tho in my opinion.

I thought you got credit checked for everything too. Even store cards. So cant quite see what difference it would make having 15% deposit. Although it would make more mortgage products available to them and at better rates I suppose.

Jowo_2

You've already stated that they had to borrow the deposit from their family - are you certain its the case that its just the affect of the searches for mortgages that are affecting their rating or because they just aren't good candidates for one?

How is it possible, or even logical, not to be able to secure a mortgage for 76k but then get one for 80k!?

Sounds mysterious and too complex to me.

Thrugelmir

When selling a house always communicate on key issues through EA or solicitor with buyer. They are ones you are employing and paying to deal with the transaction. Although buyers might be genuinely nice people , house transactions often throw up points that cause friction between parties.