95% mortgage with vendors gifted deposit?

gillianb_2

Hiya

We are a young couple from Scotland completely new to all of this and have finally saved up enough money to put a deposit on a house - woohoo!! Problem being the house we have seen has been on the market for 2 years and belonged to a older lady so it's in need of quite a bit of updating nothing major but will cost a few grand. Was wondering if there is anywhere that accepts 95% mortgages and 5% deposit from vendor? We'd prefer to keep the 5k we have saved to do the necessary work in the house if possible. The vendor has told us they are going to sign up for the 90% halifax mortgage scheme with 5% deposit from vendor / 5% from buyer so are willing to put the money forward anyway just wanting to know if possible before we approach vendor about it?

Thanks

kingstreet

Only Halifax offers 5% vendor gifted deposit and you'd need another 5% on top of that as their maximum mortgage is 90%.

You must remember the property needs to value up (ie at the "gross" price) and if there are any retentions for repairs or the property is downvalued the whole thing will probably fall apart.

I know the system in Scotland is different, but these are the general pitfalls.