Barrats 5% Deposit

bobby2shoe

Hi, hope people will be able to give me some sound advice, sure need it!

I'm currently going through the process of buying a new build property of Barrats and they've given me a 5% depoisit towards the property purchase.

Now some mortgage providers refused to accept builders deposits but finaly found one that did - so have a 95% mortgage as opposed to a 100% which was being offered, i.e in the sense that banks wouldnt recognise the builders deposit.

Once the mortgage has been approved and both myself and Barrats can move towards completion - it's an off plan property so isnt yet built - Barrats want me to provide them with a deposit!

My query is then - why? If barrats have paid my deposit - and it's a deposit not a discount as it states on my purchase forms 'deposit', why do I have to outlay my own deposit? The whole point of accepting a deposit paid is so that I didnt have to outlay one myself?

Barrats say it's because they want to make sure I dont pull out of the deal which is balls as once I complete, I'm tied into the contract to purchase anyway! Has anyone else been in my situation and does anyone else understand where I'm coming from or is it just me? Appreciate any answers...

McAzrael

Are you sure that they are not talking about the reservation fee? They may well want £100 or so to reserve the plot prior to exchange.

dmg24

New build developers often ask for a 5/ 10% deposit on exchange.

Though the 5% they have offered is a deposit in so much as it has meant you can get a better mortgage deal, it is really just a reduction in price and so an inducement to buy.