Twiggy
Member
Registered: 15th Oct 04
User status: Offline
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I herd that there was a house forsale with a cash back scheme? so that when the house was bought they got 5% cash back as their deposit? but how can they get the mortgage without the deposit first?
can anyone explain?
[Edited on 29-05-2008 by Twiggy]
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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You might find this type of things on new builds. Just adjustment of the paperwork so it looks like you're contributing so much cash and so much mortgage, when in fact the builder forgets about the cash bit.
You're left with a 90% mortgage paying for all of what you agreed to pay for the house.
Your stamp duty and council tax banding are still based on the higher amount.
Probably less common lately.
[Edited on 30-05-2008 by Ian]
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Tom J
Organiser: South Wales
Premium Member
Registered: 8th Sep 03
Location: Bridgend
User status: Offline
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one thing to note, only limited lenders will agree to these schemes currently
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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I've just bought a property using a scheme where the builders (redrow) lent me 15% of the value, so I only needed an 85% mortgage, then pay the 15% off seperately over 10 years with no interest.
This saves me quite a chunk of interest, but also means my monthly outgoings are quite heavy for the first 10years (or however long it takes me to pay off the 15%). I'm essentially getting a 100% mortgage, can use all my savings on furnishings etc but It was relatively easy to get hold of since most 'true' 100% mortgages have now been pulled.
edit: I used the redrow recommended financial advisors at 'Mortgage Talk' who found me the Abbey as a lender which agrees with this particular scheme.
[Edited on 06-06-2008 by Kyle T]
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