Not got big enough deposit, what can i do?

toao

Hi all,

I am a next time buyer, I sold my last property to pay off some debts and invest in my business, I have been renting for 6 months but i'm now looking into buying again. I have seen a few properties aroung the 150K mark, I have a 10% deposit but i can only get an 85% mortgage due to bad credit in the past and being self employed. Is it feasable to get the seller to pay the other 5% deposit?? I remember a while ago seeing alot of offers "Seller pays 5% deposit" especially on new build houses but they dont seem to be around anymore (Im looking at buying a house privately not a new development). Any advice would be appreciated.

Thanks

lynzpower

Not something Ive heard of.

I suspect that you might want to carry on saving....

silvercar

I think you may need to look at a cheaper house. If you have a 15k deposit and that has to be 15% of the price, you should look at houses for only £100k.

If this is not possible you need to consider borrowing the other 5% deposit from other sources, But remember it will need paying back and generally rates on mortgages are cheaper than elsewhere.

Jorgan_2

It is possible to get a vendor gifted deposit of 5% although it limits the number of lenders you can use. Speak to a whole of market broker who will give you the best advice.

clutton_2

5% gifted deposits used to be quite common 2-3 years ago as developers inducements to buy new build properties. But, as already said, there are very very few lenders who will accept these now, and finding a vendor who is willign to do it is also difficult. If memory serves me, you had to have the deposit in the first place, but you got it back on completion.

Thriftylady

silvercar wrote:

I think you may need to look at a cheaper house. If you have a 15k deposit and that has to be 15% of the price, you should look at houses for only £100k.

If this is not possible you need to consider borrowing the other 5% deposit from other sources, But remember it will need paying back and generally rates on mortgages are cheaper than elsewhere.

also, some mortgage lenders in their terms and conditions insist that you can prove that the deposit is your own money and is not borrowed, so you would need to check that out too before borrowing for your deposit...