Vendor Gifted Deposit advice...please

Matt19849

We have been looking for a property for ages to buy - were first time buyers and have found somewhere we really like but its a bit above out budget.
We have recently spoken with an IFA who said they have a vendor gifted deposit deal at 4.73% over 2 years that would could take out (as long as the vendor agrees etc)

I've been looking at various posts on this website and others but haven't come acorss any down sides to using a vendor gifted deposit. Does anyone know of any downsides or even plus sides to going down this route?

kingstreet

If the property doesn't value at the gross price, the whole scheme falls down if the vendor won't give you another 5% off the valuation figure.

ie property on market for £150,000, so sale agreed at 5% deposit paid and the vendor gets £142,500. Surveyor goes out and values it at £140,000 but deposit paid means vendor only gets £133,000 to facilitate your deposit.

How many vendors do you know would accept £133k on a property they now know is worth £140k?

You've paid at a minimum a valuation fee and possibly other mortgage fees then it all falls apart.