New build - gifted deposit - opinions please???

emma2009_2

we have sold our house, which after paying mortgage off, leaves us with £15k, plus £3k savings, minus approx £2500 legal fees leaves us with £15,500 deposit.

We have found a house we would like to buy on a new build site from Barwick developments. they came up for sale in 2008 at £153,000.

Following discussions they are prepared to let us have the property we want for £130,000 plus they will pay a 5% deposit of £6500. We could put £13000 down, giving us a 15% deposit.

We have a mortgage in principle from the halifax, (current mortgage with Northern Rock). I am going to phone them tomorrow to discuss the above idea.

Question 1) Do people have any opinions on the idea above and the use of gifted deposits

Question 2) Does anybody know what the halifax are like with regards to offering mortgages on new builds (do they accept 15% deposit)?, and also with regards to accepting gifted deposits.

any advice would be appreciated

thanks

StuTheDon

Hi Emma,

I may be wrong but I think most lenders look for 25% on new builds, butthat might just be flats.

Do you have any other debts or outstanding finance?

regsmith

Hi,

Yes most you can get on a new build house is 75% ltv. I would be very careful what you tell the mortgage lender - If you are get any type of discount they will only lend you the net price not the gross. All incentives including discounts, carpets must be disclosured. Also some lenders will not accept a 5% gifted deposit. Go onto their websites and look up the lending critea.

bingibongi

regsmith wrote: »

Hi,

I would be very careful what you tell the mortgage lender

Or you could just tell them the full true story - You wouldn't want to mislead your lender now would you

purplebuzz

I think that Nationwide offer 85% LTV on New Builds for new customers or 90% LTV if you are an existing mortgage customer.