Can a seller help a buyer with their deposit?

Francis63

Thrugelmir said:

Francis63 said:

I know which I'd like to do. I'd like to help a ftb. It could set them up for life. Imagine if lots of sellers did this.

Little point imagining as they wouldn't. People generally wish to achieve the best selling price they can. 

I am that seller and I would love to do this. I can't be the only one

Slithery

Francis63 said:

The vendor is simply willing to lose £15k for a quick sale and a sure sale (no chain)

What makes you think that selling to a FTB will be 'quick and sure'?

There are plenty of sellers who wouldn't even consider a FTB unless it was there only option due to how slow and unsure they are as buyers due to never having been through the process before, having unrealistic expectations and panicking about the tiniest things brought up in a survey,

Francis63

user1977 said:

Francis63 said:

user1977 said:

But the lack of any equity at the start makes them more at risk of repossession. Which is the risk the lenders are concerned about, given that ultimately they're at risk of suffering a shortfall.

I totally get that, but if the home is worth £315k then its worth £315k.  The vendor is simply willing to lose £15k for a quick sale and a sure sale (no chain) and because they actually want to help someone else (as well as themselves by achieving a quick sale). 

But that's not how lenders assess value, so I'm not sure you are totally getting it!

So, if the value is £315k and the selling price is £315k the lender cannot assess the value at what it actually is? 

The FTB has a value to the seller who wants a quick sale in that they are a FTB and have no chain, they can move quickly. This is worth a lot but is not a bonus to the FTB because they can't hope to raise enough deposit. 

If the lender is getting in the way because of fear of repossesion I think they need to look at what causes repossesion. The buyer being unable to repay the monthly mortgage. If the potential buyer has paid a greater rent without issue for 3 years that should be the assurance to the lender (who still has a 90% ltv, so not a 100% mortgage risk). 

Something has to be done. What better idea? Not every vendor will be willing, but if a simple no chain quick sale is desired this would be a kind solution for both parties...and help the housing market stay afloat.

Thrugelmir

Francis63 said:

Thrugelmir said:

Francis63 said:

I know which I'd like to do. I'd like to help a ftb. It could set them up for life. Imagine if lots of sellers did this.

Little point imagining as they wouldn't. People generally wish to achieve the best selling price they can. 

I am that seller and I would love to do this. I can't be the only one

Then reduce the property price to £275k. You'll sell it within 24 hours. 

Francis63

Slithery said:

Francis63 said:

The vendor is simply willing to lose £15k for a quick sale and a sure sale (no chain)

What makes you think that selling to a FTB will be 'quick and sure'?

There are plenty of sellers who wouldn't even consider a FTB unless it was there only option due to how slow and unsure they are as buyers due to never having been through the process before, having unrealistic expectations and panicking about the tiniest things brought up in a survey,

I think if someone is willing to pay your deposit for you (or a large chunk of it) as a FTB you would not want to back out on a whim. It could be your only chance. 
As I say, I was lucky enough to start off on a 100% mortgage, without that where would I be? If this option came up I'd chew the sellers arm off trying to get that first house.

Francis63

propertyhunter said:

....

All that is going to happen is that more debt is taken on and people work for longer.  

But, if the FTB is already paying a higher rent than the monthly mortgage repayments (as is usual) then they are better off if they can just get on the ladder. So no working longer, but working less instead, hopefully!  And rent goes down the drain, whereas mortgage does not. Rents go up, mortgages go down over time.

user1977

Francis63 said:

Slithery said:

Francis63 said:

The vendor is simply willing to lose £15k for a quick sale and a sure sale (no chain)

What makes you think that selling to a FTB will be 'quick and sure'?

There are plenty of sellers who wouldn't even consider a FTB unless it was there only option due to how slow and unsure they are as buyers due to never having been through the process before, having unrealistic expectations and panicking about the tiniest things brought up in a survey,

I think if someone is willing to pay your deposit for you (or a large chunk of it) as a FTB you would not want to back out on a whim. It could be your only chance. 
As I say, I was lucky enough to start off on a 100% mortgage, without that where would I be?

And why do you think 100% mortgages aren't available any more?

Francis63

user1977 said:

Francis63 said:

Slithery said:

Francis63 said:

The vendor is simply willing to lose £15k for a quick sale and a sure sale (no chain)

What makes you think that selling to a FTB will be 'quick and sure'?

There are plenty of sellers who wouldn't even consider a FTB unless it was there only option due to how slow and unsure they are as buyers due to never having been through the process before, having unrealistic expectations and panicking about the tiniest things brought up in a survey,

I think if someone is willing to pay your deposit for you (or a large chunk of it) as a FTB you would not want to back out on a whim. It could be your only chance. 
As I say, I was lucky enough to start off on a 100% mortgage, without that where would I be?

And why do you think 100% mortgages aren't available any more?

But this won't be a 100% mortgage

MaryNB

Francis63 said:

Slithery said:

Francis63 said:

The vendor is simply willing to lose £15k for a quick sale and a sure sale (no chain)

What makes you think that selling to a FTB will be 'quick and sure'?

There are plenty of sellers who wouldn't even consider a FTB unless it was there only option due to how slow and unsure they are as buyers due to never having been through the process before, having unrealistic expectations and panicking about the tiniest things brought up in a survey,

I think if someone is willing to pay your deposit for you (or a large chunk of it) as a FTB you would not want to back out on a whim. It could be your only chance. 
As I say, I was lucky enough to start off on a 100% mortgage, without that where would I be? If this option came up I'd chew the sellers arm off trying to get that first house.

I realise your intentions are good but the FTB might back out once struggle to find a lender that will accept it. That will be the deciding factor for many. 

Check on the Mortgages and Endowments board. There are brokers there who may be able to give you an idea of how feasible it is.

Francis63

House builders used to be allowed to advertise this:-

Deposit paid, survey paid, legal fees paid and/or stamp duty paid ...even 'cashback' on top in some cases

Example:-