Lenders who allow vendor cashback

FTBjamie

SOMEBODY PLEASE HELP!

I am a FTB or should i say want to be, I have a 10% deposit for a 100k house i wish to purchase however it is dated and the current vendor has said she will give me 10% casback upon completion to update the property as i dont have extra funds after the deposit but the likes of halifax and natwest will not lend under them terms....does anybody know who will?? :mad:

beecher2

Tell the vendor you'll buy it for £90k, use £9k as a deposit and then update the property as and when you save up. Otherwise you're in negative equity from the outset - even if you could find a lender who would be willing to allow this.

Cannon_Fodder

Agree with Beecher. 81k mortgage instead of £90k mortgage = 10% smaller monthly repayments, save those and every 6 months do a stage of updating...

dunstonh

What will we do when the valuer goes out and says the property is only worth £90k and not £100k?

All that is happening here is the vendor has increased the price and giving you back what they have increased it by. This is why lenders dont like this. In the property boom years they ignored it as values were going up fast. However, with values no volatile and still possible of further drops, they are not keen to lend on those terms.