"> Do any lenders accept vendor gifted deposits? | largemortgageloans.com
Ask an Expert
Ask an Expert » Do any lenders accept vendor gifted deposits?

Do any lenders accept vendor gifted deposits?

Q: Do any lenders accept vendor gifted deposits?

A:

Yes some lenders will accept a vendor gifted deposit or other cash incentive provided this does not exceed the maximum of 5% of the purchase price. If the gifted deposit does exceed 5% of the purchase price, then this may affect the maximum loan that you can borrow. For example, if you were looking to buy a property for £ 200,000 and you received a £ 10,000 (5%) vendor gifted deposit then you would need to put down a minimum of £ 10,000 (5%) deposit from your own funds in order to take out a 90% loan-to-value or £ 180,000 mortgage. If you were to receive a £ 20,000 (10%) vendor gifted deposit on a property with a purchase price of £ 200,000, the mortgage lender would reduce the maximum loan that they could offer you down to £ 171,000 and you would need to put down £ 9,000 deposit from your own resources. Call us now 02075194900

These questions are for information purposes only and do not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration
Return to the Questions archive

Latest Articles/News

Case Studies

There is no denying that the commercial lending sector is experiencing some…

Latest/Related News

The past few months have been challenging in many different ways, but the h…

Press Release

The team at largemortgageloans.com has collectively been nominated for thre…

Press Coverage

I had to get a mortgage with my mum: first-time buyers frozen out by banks …

LML Brochure

Download our brochure to find out more about largemortgageloans.com and what we can offer

Click to Download

Sign Up

Subscribe now, to hear from us on the latest mortgage market news, products and services.

Client Testimonials

Close

Live chat with
our team now

Chat

largemortgageloans.com