5% vendor gifted deposit scheme

darkpker88

Hi all,

Me and my girlfriend are looking at purchasing our first house and wanted some advise on the 5% vendor gift deposit scheme.

We are looking at a house for 137k (not a new build) and want to try to get a 15% deposit to get the best interest rate possible.
We currently have 14kish for a deposit and wondered if a 5% vendor gifted deposit would be possible on top of our deposit.

It has been explained to me if you are after a vendor gifted deposit it is usually instead of negotiating the price of the house (unless the house is way overpriced, then both would be considered).

If this is possible what would the mortgage amount be for, the house price remaining at 137k, we put down 13,700 and the 5% gifted deposit coming into effect somewhere?

Any advise to help me understand how it all works would be great.

Thanks,
Gregg.

Dave_Ham

Hi Gregg,

Usually these are not mutually compatibile. By that I mean the lenders that will accept vendor gifted deposits are usually not topping the best buy table - even if it meant the 85% to 90% jump..

Would suggest you attack it and get a price you are happy with whilst saving everything you can towards the deposit.

Just my opinion and I stand to be corrected...

holly_hobby

Only vendor gifted deposits are now from builders at a max of 5% - Halifax were the last to pull out of private VGDs last summer (although they still accept builders as stated).

Hope this helps

Holly