Vendor deposit contributions?

c00ky83 | 23:23 Mon 23rd Feb 2009 | Property

3 Answers

I'm looking into the possibility of buying my first flat, and a common feature seems to be "X% deposit paid by vendor", to encourage people like my by lowering the required LTV. Do people know of any issues with such offers - for example, in the way lenders will treat me? Any thoughts welcome...thanks.

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CheekyChops

Some lenders won't accept vendor gifted deposits and require that you have a seperate deposit of your own as well.

c00ky83

Question Author

Thanks for your answer. To clarify, I do have my own deposit but in some cases these offers (usually 5%) would, when added, take me over certain percentages which open up better mortgage deals.

angeldraws

It is another way of lowering their price AND helping the purchaser with getting a mortgage - there is usually a clause with thr solicitor that if the purchaser backs out they cannot have the deposit!! Makes sense really - if you have your deposit assume they will be willing to knock their price down by the 5%

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