mortgages vs 5% gifted builders deposit and incentives

martimarti

Yes, i did, the only drawback is that the overall APR is 4.5%.

Thrugelmir

martimarti wrote: »

My worry is that, if the bank will underestimate the value of the house

If I give you £25k and you give it back to me.

What does it value the item I am selling to you .

Zero.

Builders discounts are merely a way of maintaining sale prices at Land Registry. Hides from view actual selling prices of individual properties.

In effect inflating them.

martimarti

I know, fully agree.
It is a builders way of keeping the value high in land registry book and keeping the customers happy.
Overall, if I compare the money I would have to put into the old property to have it done the way I want and the money i am paying for the new house, the new house comes up a bit cheaper.

The only drawback with the gifted deposit from the builder is the difficulties in getting decent mortgage. As the wast majority of the banks don't accept the 'gifts'.

Thrugelmir

martimarti wrote: »

The only drawback with the gifted deposit from the builder is the difficulties in getting decent mortgage. As the wast majority of the banks don't accept the 'gifts'.

Agreed. So requires higher level of equity injection by the purchaser.
Like every purchase comes down to affordability.