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More on buying without deposit

I wrote a couple of weeks ago about the amount of enquiries mortgage brokers are facing around buying without deposit and I forgot to mention a couple of other important ways to buy without deposit in my previous post.

Firstly it is possible to arrange a gifted deposit from relatives or even possibly another interested party using a form of contract which entitles them to ownership of the relevant share of the property. This contract would allow you to buy the interested party out at your choice or entitle them to the share on sale.

This device gives the potential giftor a legal right to some of the proceeds of sale even if values continue to fall and much more certainty of receiving their gift back in the future.

Also those who are lucky enough to have the right to buy a council property may be able to buy without deposit as well because many lenders will accept the discounted value of the property as the deposit as long as their valuation reflects the councils figures.

However if you are  eligible for a Right to Buy but live in a council flat don’t get too excited straight away as many lenders are restricting their exposure on flats due to the flood of 1 bed properties during the boom so if your property isn’t a house its a good idea to speak to a mortgage advisor and see whether a deposit will or will not be required.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. YOU DO NOT HAVE TO PAY A FEE FOR OUR SERVICES AS WE RECEIVE COMMISSION FROM LENDERS. IF YOU PREFER YOU CAN PAY 1% FEE ON COMPLETION AND WE WILL PAY ANY COMMISSION WE RECEIVE TO YOU. SOME BUY TO LET AND COMMERCIAL LOANS ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY
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