Anyone lenders currently doing gifted deposits?

Lynxs

Hello,

My broker suggested that he would be able to get me a mortgage for 85% LTV using a gifted deposit scheme. The problem is that when my broker has spoken to the lenders, they are telling him they won't do the gifted deposits.

I currently have the 90% and the other 5% would be gifted from the seller.

Stats:

Buyer: First Time Buyer
House Price: £87400
My Deposit: £8740
Seller Gift: £4370

Mortgage Required: £74290

Obviously having 85% LTV enables less monthly payments and better interest rates.

Does anyone know if any lenders that would accept this type of mortgage?

As always, thanks for all your input.

kingstreet

Nope. Last lender accepting vendor gifted deposit cases on second hand properties was Halifax and they pulled out in July last year.

Only purchases at undervalue from a relative or newbuilds see any gifted deposit being accepted for a mortgage.

betmunch

When did your broker suggest he could do this?
Seems hes a bit out of touch!

Lynxs

betmunch wrote: »

When did your broker suggest he could do this?
Seems hes a bit out of touch!

2 days ago. I'm seriously thinking of changing broker at this rate, a few of his "guidelines" have seemed suspicious.

Thanks for your input.

brit1234

Ignore gifted deposits, they risk negative equity. Instead buy a bigger better quality 2nd hand property rather than newbuild. Also with house prices falling in 2012 and I believe this will include London (due to mass drying up of foreign funds) you are better saving up a 15% deposit. It is quicker save up that extra 5% with prices falling.

herbiesjp

Lynxs wrote: »

2 days ago. I'm seriously thinking of changing broker at this rate, a few of his "guidelines" have seemed suspicious.

Thanks for your input.

Definitely get a second opinion to see what someone else will offer you and how the advice compares.

betmunch

Lynxs wrote: »

2 days ago. I'm seriously thinking of changing broker at this rate, a few of his "guidelines" have seemed suspicious.

Thanks for your input.

2 days??? Its been like this for ages! Are they Estate Agent Based and just fed you a line to get you in?

No professional should have made that claim, it was very well publicised at the time!

Lynxs

betmunch wrote: »

2 days??? Its been like this for ages! Are they Estate Agent Based and just fed you a line to get you in?

No professional should have made that claim, it was very well publicised at the time!

Surprisingly, this information was from a broker who runs his own private mortgage advice firm, apparently has been in the business for 20 years.

His words literately was "You'll be able to get a gifted deposit with ease, everyone is doing them these days!"

Never mind, i'll get a second opinion as suggested.

Thanks to all for your contributions.

betmunch

Lynxs wrote: »

His words literately was "You'll be able to get a gifted deposit with ease, everyone is doing them these days!"

Just laughed out loud in the middle of my office, 6 pairs of eyes on me now!!!

What a bizarre thing to say