Mortgage "Vendor gift"

[tartanferret]

Can anyone explain the term.. Vendor gift (deposit) when buying a house?

Thanks !

 

[vizsla]

I think its when the person who is selling the house gifts you a deposit but to do it right it goes through the mortage company who will also wants you to put some cash in aswell

 

[TeeDee]

Common in the states ( or at least all the books I read seem to suggest )

Less common and easy to execte in the UK. Developers used to 'gift' the deposit to a purchaser for a sale of a property but thats been tightened up to a very large degree.
More common know for a gifted deposit to come from a family member to another family member interested in purchasing the property from one person to another ( mum to son etc )

Can I ask in what context you ask this question? Maybe I can help further , in another life I did uncommon things with property. Feel free to PM me.

 

[tomongoose]

Basically the builder adds 5 or 10% to the price of the house then gives it to you as a sort of cash back for your deposit so you can get the mortgage to buy the property. I think this has been clamped down on as it can lead to negative equity

 

[wingstoo]

Hasve a read of this, it may help.

http://forums.moneysavingexpert.com/showthread.php?t=2488565