Gifted Deposits... Can anyone help me??

angelangela

Hello all!
Im new to MSE as a member but often turn to it in times of need (thank you Martin Lewis - unsucessful in my bank charges reclaim but I had a damn good go all the way to the FOS!!)

I am looking for help with regards to Gifted Deposits....

I am in the position (again) after a break up of being a first time buyer,
I am looking to save up quite a bit for a deposit in the next year but will still be short of the required 10% min that I have seen advertised for FTB's. I have a few options - I could go Shared Ownership, but new build doesnt appeal and I want to have control over my property and dont fancy anyone else getting rent paid to them whilst I would possibly get a mortgage for the whole amt.

I used to work in an estate agents a few years ago and was wondering whether you can still use a gifted deposit as a way of getting the ever elusive mortgage!

As an example I have seen a property for £200k. (for examples sake) if I had 10k saved but needed that extra 10k and the seller was willing to give me the 10k as gifted deposit is it still legal and do-able? and does anyone know of any lenders that still do it... iv researched but all I get back is OLD info!!

I know a few rules apply...

1. That the surveyor must agree that the £200k is a fair asking price,

but im stuck on how the legalities are around this.... obviously I have to tell my solicitor that a portion of the deposit is gifted, but how do I get around the whole land registry thing?

Sorry If iv gone on abit but wanted to be fully armed with my facts before I go ahead with the suggestion.....

Thanks in advance for your help and again sorry for the rambling!!

Ang

brit1234

Don't think they really exist anymore, you have to declare them to your lender who will most probably say know. Gift deposits were just a big way of defrauding the market and thankfully gone.

Better off saving a deposit longer after the longer you save more house prices fall. After all they came down 1.7% this month alone (Nationwide non season adjusted)

Beast

I'm not sure what your situation is but given your use of the word 'again' it's worth being aware that if you have owned property before you will also need the money for stamp duty as you won't be a 'FTB'.

DVardysShadow

Gifted deposits no longer work. Lenders want to see that you are putting in enough of your own money.

GMS

There are products available for 5% vendor gifted deposits.

Best thing to do is visit a 'Whole of Market' broker.