I am confused - do accord accept builders deposits or not?

Daniel_gecko

Hi folks,

I am buying a house from Taylor Wimpey and they are giving me 5% deposit. So theoretically I thought I would need another 20% deposit for a 75% LTV mortgage.

Some lenders accept this, however some lenders see through it and take the value as being the sale price minus the gifted 5% deposit, and then ask me for 25% of that reduced value.

I was told that Accord accepted this, but I just phoned up and got told otherwise. However the girl on the end of the line didn't seem to know very much, she had to put me on hold and ask somebody else when I wanted to know how long the mortgage offers lasted..



Can anyone (probably a broker, I think accord are broker only) tell me for sure - will Accord ask me for 5% from builder + 20% my own cash, or will they ask me for 25% my own cash of 95% total?


She also said the offers expired 3 months after the mortgage offer is made, which goes against things I've heard already (I heard the offer lasts 3 months from date of application).

Cheers

Senior_Paper_Monitor

Exactly as per my post on your previous thread .......

"Yes you understand the builders deposit correctly - Accord accept a 5% builders deposit (make sure this is not a 'discount', they don't accept that)."


and please read the note I gave you on the validity of offer subsequently ..


"Accord offers can be valid 3 months from 'date of application' (I have one on my desk at the moment but it took a lot more than 10 days to get it - at one point in the process they were processing letters/documents received from 10 days previously!).

The validity period 'from date of application' if applied is very unusual (normally it is from offer) and a potential problem for clients when the application to offer period eats up half their completion time !"




If you are asking am I sure (or other's to verify this) then, yes:

The case approaching completion on my desk has a 5% depsoit - and in the process on their second property (there was a change of property after initial offer - whene next door with a larger plot on a new build became available) the half-witted developer's rep completed the CML form incorrectly and we had to get it re-issued showing the gifted deposit.

In this case (application 9th April), the first offer was issued 12th May with an expiry date of 10th August.

The second offer was isused on 20th June with an expiry date also of 10th August (although a new product fee and valuation were paid to also obtain a cheaper product which had become available) - this led to a long discussion on what validity periods apply in which circumstances and there are a number of variations (including some measured from initial application - primarily when extensions to validity are requested). The post is solely to make you aware that these variations can occur and need to be watched (which your broker will do for you).






Incidentally, in a a recent discussion with Accord they advised me "they are back to target service levels".

Daniel_gecko

thanks again (:
it's just scary when they say things that shake you from where you thought you were

if they don't take the 5% + 20% deposit then the next best mortgage is a lot worse ):

kingstreet

I subscribe to the theory that if you phone a lender three times and ask the same question, you'll get three different answers. In the last few years, so many quality processing staff have been dumped, it's hardly surprising the quality of knowledge and service has gone straight downhill.