If you need urgent support, call 999 or go to your nearest A&E. To contact our Crisis Messenger (open 24/7) text THEMIX to 85258.
Read the community guidelines before posting ✨
Options
Vendor gifted deposit
Former Member
Posts: 1,876,323 The Mix Honorary Guru
I'm looking at at buying a house costing 60k. We don't have a deposit saved yet (just paid off debts so beginning to save a deposit, will prob take about a year to save) The ad says there's 10% vendor gifted deposit. I don't really understand how this works. Can anyone explain it to me please!
0
Comments
You may find you have to arrange the mortgage through an advisor the seller specifies, as they will be creative to sort out the discount.
Best thing is to ask them to explain it, because offers vary.
To be extra safe and sure, get a surveyor to thoroughly check out the house. It might have dry rot and that is a nighjtmare and costly to get rid of. Or ever woodworm. 60K seems quite a small amount unless the property is off grid somewhere, like up in the boonies. I am sorry I don';t know what "Vendor gifted" means.
You'll probably be required to give at least 10% deposit for a mortgage. But good luck.
Poppi
So does it mean I pay £60k, £54 goes to the vendor and £6k goes to the mortgage company as a deposit? I know that your choice of mortgage lender is very restricted this way but its a way of getting on the property ladder
To be honest I wouldn't be too worried about losing money on this one, we' be buying to live in for a few years and do it up. Its so cheap already I doubt it'll lose much value and we'll effectively save the £7k we'll waste renting for another year and a half while we save a deposit
But you have to tell them don't you? That's why you're limited in choice?
There's a few mortgage lenders asking for 10% deposits at the moment. If no-one would give us a mortgage with a vendor gifted deposit then that's dilemma over anyway! But if they would then is it a sensible way to go?
Also bearing in mind the money we'll waste renting in the next year and a half to save a deposit would outweigh a drop in price up to 10%
That's what I was mentioning about having to arrange it through an advisor that the building company specifies for you. They then work the numbers. Otherwise the mortgage companies dislike the fact that you've essentially had a massive discount.