Hi guys,

Have been reading this forum for ages and thought I would just bite the bullet and post!! Me and my partner are looking to buy a house, weve found a lovely 2 bed house at 104,950 with a vendors girfted deposit. We also have a few meetings booked with mortgage advisors with several companies over the next week. Im vaugely aware of the working of the gifted deposit but not completely clued up on how it works?

Also we were considering taking out a loan of £5000 to help pay for sofa, decorating, legal fee's etc (appliances may be included in this place) We havnt put an offer in yet and were both a bt lost to be honest!!! Im sure ive said something hugely dunce-like but there's just so much to understand! I suppose my main question is what's the best process for us?

Thanks for reading!

Ooh what i meant to say was will the loan affect mortgage getting chances? As my partner is paying a car loan off 330 a month. Im on £16,300 and he's on £16,500 before overtime wich he gets gurenteed approx £2000

Hi...it will be very tight and the number of lenders that accept vendor deposits has reduced. You will probably end up with Birmingham Midshires or maybe another HBOS group lender like Halifax or Bank of Scotland. These lenders will have a higher lending charge, which is another fee to add on to the mortgage. The brokers you see will explain this.

The gifted deposit is offered to allow purchasers to borrow more readily without having a deposit themselves. This means that a house for sale at 104,950 will be sold for 99,702, the 5,248 discount is effectively the deposit.

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Regards

Ian

Thankyou very much completefinance :) I work for natwest/ royal bank of scotland and after being there for 6 months get preferencial rates through them...the only thing is this house wll have gone by then. Also would the loan affect our chances of a mortgage? Not that this would be taken untill during to pay legal fees, or say after if possible. This is what I understoof of the girfted deposit but thought there would be more to it than that lol. Am finding this all very exiting, I think long after I find somewhere and am settled im going to be looking at property's and following the market.

If you are an RBS employee you are on to a good thing as they still allow 100% for their staff and the rates are very good. Your bank will use their affordability calculators to determine the amount you can borrow and the more commitments you have at present the tougher it will be. I would wait the mandatory 6 months and perhaps the market will have settled, it has just started to make the move downwards and within the next 6 months the market will be more favourable.

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Regards

Ian

Thankyou Ian! Such a shame about the lovely house weve seen though! Lol I have accsesibility to the affordability calculators as it's part of my job to see if a customer is eligible for a mortgage, if i pass on these is it likely that I will pass on the Your Bank calc's?

As we would not be moving out of here we can save a fair whack if we're waiting for my 6 months to be up. I just got caught up in the property to be honest. I'm sure my endless questions are frustrating! Thank-you very much for your time :)

I am sure that your bank will do everything they can to help you as an employee. The calculators can be tweaked to enhance borrowing by either extending the term or interest only, this may be useful if you need to stretch your income. It is better to have disappointments when you are not quite ready to buy, it will toughen you up for the process ahead :)

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Regards

Ian