gifted deposit?

12andy

While im currently house hunting ive noticed there are still vendors offering 5% towards deposit(private not new builds). reading a few posts on here i get the impression that mortgage lenders no longer accept this...if not how will this work?will it just be 5% off the asking price or 5% back on completion, plus if this is no longer accepted how come estate agents still have vendors stating this

garth549

I bought a house with a 5% vendor gifted deposit on a mortgage with Halifax a few months ago, but you're right I thought all these offers had been withdrawn now.

It might just be a case of websites not being kept updated - remember a lot of houses will have been up for sale for 12+ months

Edit: The gifted deposit essentially means you offer for example £100,000 to the vendor for the house but only actually pay £95,000 to them (they 'gift' you the £5,000, it never actually exists). The sale of the house gets recorded with the land registry at £100,000.

Seems very silly to me (why not just offer & record the sale at the lower value?!) but I didn't complain, makes my house's value look higher than it probably is

poppy10_2

garth549 wrote: »

Seems very silly to me (why not just offer & record the sale at the lower value?!) but I didn't complain, makes my house's value look higher than it probably is

Yep, that's the reason. It's fraud if it isn't declared to the mortgage lender.