developers offer 10% deposit paid

bing0

the idea of developers offering to pay 10% deposits,is it a good or bad idea ?

thanks,

Richard_Webster

Have a look at
http://forums.moneysavingexpert.com/showthread.html?t=956789
in this connection - it used to work, but is much less likely to do so now!

tradetime

bing0 wrote: »

the idea of developers offering to pay 10% deposits,is it a good or bad idea ?

thanks,

I don't think it is a good idea, it simply lures more people into an over inflated market, and creates more mortgages that buyers are likely to default on, adding to the financial crisis banks find themselves in. The pain caused by the bursting of this bubble will be severe enough as it is, without inflating it any further.

brit1234

Bad idea, its yet another dodgy gift aid deposit scam designed to keep prices artificially high. On top of that its likely your bank wouldn't give a mortgage if they knew where the deposit came from and if you didn't tell them you would be committing mortgage fraud.

These newbuilds are artificially priced high to compensate for the gift deposit. They are also likely to lose the most value in the crash, plunging you deep into negative equity.

epz_2

where is the option for

its mortgage fraud and should be banned!

Cazza

Most lenders won't accept this anyway, I can't think of any and the majority of my business used (!) to be New Build. The maximum the high street lenders will accept is 5%. There's a fairly high number that will either work on the nett purchase price or ask the valuer to give them a valuation figure nett of all incentives. Other lenders will insist that if you receive 5% gifted deposit, you match it with a further 5% yourself, although they will then treat the loan as being 90% LTV.

bing0

thankyou for your reply,I was concidering this option in the future,but the poll results and your comments have changed my mind. Thankyou all very much .

jammie*dodger

Why not just ask them for a 10% discount instead? Or maybe more

Rob.

bing0

jammie*dodger wrote: »

Why not just ask them for a 10% discount instead? Or maybe more

Rob.

I can not raise a deposit at present,but can comfortably afford the mortgage,thankyou.

lonestar1

Depends, I voted yes on the assumption its better to get a 10% deposit paid than nothing at all. Obviosuly given the choice of 10% deposit paid or 10% off the asking price its a no brainer.

Treadmill

I'd prefer they chucked in a new car :-)