Shings

Right...

From what I gather I offer on a house- say £100k.
They agree the sale but we tell the mortgage company its £110k with agreement from the vendor.

The vendor then gives me back the £10k extra to use as my deposit to match the £10k I already have.

Net effect is that I have a larger deposit % and hence access to the lower rates.

In my case I want to offer £100k, vendor deposit of £8k to match £8k I put down which means I have an extra £2k to play with when it comes to doing up the house I want and 15% deposit which gives me access to a lower rate.

Anyone know the inns and outs before I go and get the bullshit off the estate agent?


Jake

Maria.

Best bet is to call an IFA about it honey. Normally they will offer you advice for free over the phone to start off with, if not most of them offer 30 minutes free advice if you go and see them.

Chip

iTrader: (3)

Just bear in mind that if the valuation is 100K, the bank will consider that sum when working out the percentage LTV

Shings

Yeh I know... luckily the house is £140k - I've just offered £95k and the estate agent reckons not much more will get it brought.

RickyLee53

It would depend on your actual case, but as you have an estate agent, I doubt you know the vendor.
So it won't be seen as a vendors gifted deposit, instead it'll just be the purchase price as normal. If the house comes back with a higher value, then its just a bigger bonus/security for them.