Vendor assisted deposit being offered by vendor?

jonny_power

Hi all,

We're FTB's with £7000 savings and combined income of £50k pa. No loans, just student loan debts and no dependents. We're able to comfortably save about £700 a month.

We aren't in a rush to move, and for the cost of the house we are looking at (around £120k) we don't yet have a big enough deposit for 90% LTV. Time is definitely on our side.

However we have seen a nice house, and the vendors are desperate to sell. They have put the asking price as £118k and are offering either 5% cash-back or as a part of a vendor deposit mortgage. I've heard about these but am not clued up particularly. The missus thinks this sounds great but I definitely don't want to rush anything.

I actually think that £118k is perhaps a little high but we are weary of being too aggresive if we put in an offer as we would need the 5% from them to secure the deposit. I know these mortgages also rely on a valuation from our lender, so does anyone know how this all works? Because the deal is coming from their side I'm a little bit suspicious and I think their EA may have mortgage people internally who would be working it out, which may not be particularly 'money saving'

Any help gratefully received.
:cool:

koexelek

I think Halifax are currently the best option for a vendor gifted deposit ( to a maximum of 5% of the purchase price).

Nothing wrong with it, but the surveyors tend to have a habit of downvaluing the properties by 5%.... so that it doesn't work