Builder's Deposits

Posted on 16 July 2011 by Saul


Desperate to save but it just can't happen due to tenant rentals . Any company offering builders Gift deposit?

Saul

There are numerous developers, both national and local, who offer gift deposits of various sorts.  You need to be wary when looking at these and to bare in mind that all of them are an incentive for you to buy on that particular development.  You should ask yourself if you are getting a discount or if the price is too high for them to sell in the current climate and in fact the gift just brings it down to the true value.

As far as the deposit is concerned you will find that all lenders will want you to put in at least 5%, even if there is a builders gift deposit.  This can be from your own personal savings or a gift from a close relative, but without it you realistically have no chance of getting a mortgage.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

Stay connected....

Association of Mortgage Intermediaries

Legal

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.