Ms

HELEN_CHURCH

Hi

Looking for a house and found one that has 5% deposit paid. What does that mean, who has paid it and does that mean i would not have to find any deposit at all?

lynnexxxo

I assume its a new build? The builders will pay your 5% deposit.

It sounds like a good deal but in truth the properties are simply overpriced. It does mean (assuming that the surveyor values the property at the full price - not always the case) that you may not have to take a 100% mortgage and you may avoid higher lending charges.

However its likely that if you try to sell the house in the first few years you may not get back what you pay for it. These incentives are usually only offered on new builds that are not selling particularly well.

If you are looking to make a quick buck then aviod. If however you are looking for a place to live, like the area and plan on living there for a number of years then go for it.