Gifted Deposits

Dogz111

Hi,

I'm competing on the purchase of a property with someone who requires a gifted deposit. House is being sold via an asset management company - its not a repossession. My offer is £1k less than theirs and I do not require any form of incentive. I have laid out my final offer and will not increase. I am able to transact fast (large deposit, mortgage in place etc) and want to have the deal done before Xmas if at all possible

The gifted deposit they have received is 5%, I'm guessing they will have c5% in savings to make it up to the min 10% required by all lenders. Their offer was accepted c3 weeks ago and no progress has been made to date (eg surveyors going out). This is why estate agent called me back to see if I was still interested.

The question I have is given my assumptions on their circumstances above will they be able to get a mortgage? My initial thought is that they will not but I'm no expert so thought I would throw the question to people with more experience.

dimbo61

The estate agent called YOU back so if you want the property call there bluff and say the deal is on the table for one more !
Tell them after that you will spend the deposit money on a new car for the wife and good luck with the couple and the gifited deposit.
Dont offer one penny more its a buyers market and you are in a strong position.
GOOD LUCK

g_attrill

Probably quite shaky unless the property really is worth the full amount, not many lenders seem to like gifted deposits, although if it's not a new-build and the purchase price is realistic they might be lucky. Either way, if the estate agent has called you back then they probably know more than they are letting on. Since the vendor is effectively discounting the price by 5% already you certainly shouldn't be offering any more.