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Vendor Gifted Deposits
bozbear
Posts: 59 Forumite
Does anyone know how vendor gifted deposits work? The reason that i ask is that back in June we were looking at buying a property and the broker got us an agreement in principle using a vendor deposit of 5% - anyway we pulled out of the deal due to problems found in the survey...
We now have a few options and are trying to consider which is best and if we could use a vendor deposit etc.... (we do have some deposit saved but have a baby on the way so if we can avoid using it would like to)
1. My mother in law has her house on the market for 250K she wants us to buy it off her for 120K, It has a self contained annex which she would want to continue living in whilst we owned the house, We are a bit wary about this but are considering it as it could be a good financial investment... Could we use the 130K that is equity in the house as a deposit?
2. We have looked at a terraced house that friends of ours are selling. It has been on the market since September and is still on the market they are desperate to sell. Thy have it on the market for 130K but are willing to accept low offers as they need it sold - Is there a way that we could use a vendor deposit with them? Say offer 115K and use the 15K as a gifted deposit?
3. Continue to rent and see what the market does?
I am not very good with mortgages but our 1st broker told us that vendor gifted deposits were fine and then another onetold me there was no such thing?
Any advice as to if they are legit and who offers them would be appreciated...
Thanks in advance
We now have a few options and are trying to consider which is best and if we could use a vendor deposit etc.... (we do have some deposit saved but have a baby on the way so if we can avoid using it would like to)
1. My mother in law has her house on the market for 250K she wants us to buy it off her for 120K, It has a self contained annex which she would want to continue living in whilst we owned the house, We are a bit wary about this but are considering it as it could be a good financial investment... Could we use the 130K that is equity in the house as a deposit?
2. We have looked at a terraced house that friends of ours are selling. It has been on the market since September and is still on the market they are desperate to sell. Thy have it on the market for 130K but are willing to accept low offers as they need it sold - Is there a way that we could use a vendor deposit with them? Say offer 115K and use the 15K as a gifted deposit?
3. Continue to rent and see what the market does?
I am not very good with mortgages but our 1st broker told us that vendor gifted deposits were fine and then another onetold me there was no such thing?
Any advice as to if they are legit and who offers them would be appreciated...
Thanks in advance
:beer:
0
Comments
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there is definitely such a thing as a gifted deposit, but, fewer lenders now accept them.0
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If the lender is not told about a gifted deposit it is mortgage fraud and you can go to prison!
As long as the mortgage broker makes full disclosure then it should be OK - but some brokers don't and the solicitor has to do so.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
we in new homes do gifted deposit and ALWAYS TELL THE VALUER we used to be able to do white goods etc, now every thing has to be open and honest so tell the F.Advisor and they will place your mortgage with a b.soc; that does accept gifted deposits.my bark is worse than my bite!!!!!!!!0
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