Persimmon Parent Payback

Amba_Gambla

I saw an advert on a development close by about 'Persimmon Parent Payback' - A family member lends you up to 20% deposit, and Persimmon pay them 5% interest on it for 2 years.

Has anyone used it, or know any more about it? - sounds like a pretty good deal (obviously you can only use it on new builds, and selected plots)

dimbo61

So Dad is going to put down a 20% deposit for you ?
what happens after 2 years ?
New builds tend to lose value ? Its not new anymore is it !
Have you saved a deposit ?
What happens when Mum/Dad/granny want/need there money back ?

brit1234

Amba_Gambla wrote: »

sounds like a pretty good deal

No it doesn't.:rotfl:

You are getting your parents to lend you a 20% deposit for a property which is overvalued by more than 20%.

Do your research before signing up to one of these scam schemes.

ashleypride

Amba_Gambla wrote: »

sounds like a pretty good deal

Sounds like a great deal for the developer. This is really the same as the old gifted deposit scheme. Make people believe the house is affordable by giving money back (or in this case get the mugs parents to stump up the money), and at the same time artificially inflate the land registry value, so more houses can be overvalued and sold to people who really cannot afford them.

Amba_Gambla

New builds aren't automatically a bad deal - especially in the current economic climate - house builders can be negotiated with (as family members have already shown in the same development).
You pay a bit more, but then you have a 'warranty' on your house.

I have been offered a loan towards a deposit from family members already, it would be nice if they could get something a bit more out of it than just satisfaction of helping me out.

Mallotum_X

These schemes are designed to help the builder, not the buyer. Why would they want to give 5% every year on a loan where they dont get the cash...

Scam that proves they know their houses are over valued. Avoid.

brit1234

Amba_Gambla wrote: »

I have been offered a loan towards a deposit from family members already, it would be nice if they could get something a bit more out of it than just satisfaction of helping me out.

So in reality a 100% mortgage. Are you really in a position to become a home owner?

Have you considered saving a deposit over a few years and buying normally rather than risking instant negative equity?

The best newbuilds are those from small builders. The worst ones are the biggest developers, being the most overvalued, poorest material, least space.

Amba_Gambla

brit1234 wrote: »

So in reality a 100% mortgage. Are you really in a position to become a home owner?

No, not a 100% mortgage

AmbaGambla wrote:

I have been offered a loan towards a deposit from family members already

Thank you for your advice, and yes, I have thought it through. And discussed with financial professionals.

I would like to be able to get onto the housing ladder before the age of 45

F_T_Buyer

If I were you I would ignore these offers... just talk hard cash with the developer. I negotiated a great deal with my new house, and now I know what everyone paid, I paid hugely less than those who got deals like this.

poppysarah

Amba_Gambla wrote: »

I would like to be able to get onto the housing ladder before the age of 45

Never mind 'like' what about financially being able to?

House prices are still insanely high so it's not a brilliant time to be putting money into a house.

brit1234

Amba_Gambla wrote: »

I would like to be able to get onto the housing ladder before the age of 45

How much deposit do you have on your own?

The reason I ask is if it is not much you will be in negative equity as soon as you purchase. My reasons are newbuilds are more overvalued than other houses and house prices are falling. Land registry figures out today are showing further falls.

The get on to the housing ladder at any cost attitude has burnt many people.