2 questions re potential mortgage

Baking_Mad

Hi, hoping I can get some help here.

My husband and I are looking to buy a house. There is an age difference between us. My first question is: "Would all mortgage companies always go by the age of the oldest applicant or are there any out there that would lend on joint income but by the youngest applicant's age?"

Second thing I'd like to find out about is a Vendor Gifted Deposit. The property we've seen on the net is being advertised with up to 5% VGD. What does it mean exactly?

Many thanks for all the help

holly_hobby

If the older applicant is the main earner or their income is reqd for affordability, then the max morgage term available will be in accordance with the older applicants normal retirement age (NRA).

Vendor deposits - Halifax have just withdrawn their scheme (builder and family deposits remain acceptable).

Hope this helps

Holly

Baking_Mad

thanks, I get it re first part. still not sure re 2nd though. The property is being advertised as

Up To 5% Vendor Gifted Deposit Arrangement Available Subject To Status...

As far as I understand it's nothing to do with Halifax, does it mean they'll pay up to 5% deposit if we match it? or something along those lines?

kingstreet

Vendor gifted deposit needs a lender to be prepared to accept a 5% reduction in the price as part of your deposit.

For example, you could get 5% off the price and put 5% down yourself to make a 10% deposit overall.

Sadly, Halifax was the last lender offering this facility and it was withdrawn on 25 July.

Baking_Mad

ok, thanks very much. That's a real shame about Halifax, just annoyed I didn't know about VGD before...:mad: