5% Deposit Paid by vendor

Caseyface

This may be a silly question, but does the above mean, that if we have no deposit, we can buy a property that has a percentage paid for by the vendor and just need to pay for the fees ourselves etc? And providing we can find a 95% mortgage of course.

uptomyleftnut

yes. I believe that is still the case?

princessamy86

No because it's basically a paper exercise to do a vendor gifted deposit and many lenders won't accept them anyway. What you're asking is if you can get a 100% mortgage, and you can't as far as I am aware. To do this, you would need to have at least 5% deposit saved up and then the paper exercise would "gift" you 5% more from the vendor.

leanne86

We are in the process of buying a house that was initially advertised with "5% deposit paid by seller". We thought, great, we only need a 5% deposit ourselves. However as princessamy86 has stated, we couldn'd find any lender that would except the 5% vendor gifted deposit. Our mortagage advisor said lenders used to, but the only one we could find would only accept them on new builds. We therefore asked the seller to deduct this 5% off the sale price of the house, which they did. Hopefully enchaging contracts within the week!