General (main property discussion here) - Gifted Deposits

Can anyone explain the process of Gifted Deposits & what is involved?

Cheers

A gifted deposit is where someone would give you a discount for a property and that could be used as a deposit for the property.... which in theory is a very good idea! However there are few lenders that will allow this and if they do they charge high rates for the risk. This would have been a fantastic idea but unfortunately due to inflated prices allot of lenders have got their fingers burnt with it and therefore are very cautious of this now. If you are thinking of doing this make sure that you treat it with caution as it can be a bit of a grey area. I now run a property investment club but previously was a mortgage advisor so i have seen it for both sides!!

Hope this helps you!!

barry,

you could take a look at some of the past posts as there has been lots of discussions on these in the past.

here one thread http://landlordtrader.co.uk/thread_198_FTB_Gifted_Deposits_Would_You_.html

tom