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Cash back from developer?

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  • Cash back from developer?

    When buying a new house – if I have cash back from the developer under 5% of the purchase price – does the mortgage lender have to be informed? – What price is registered on the land registry? - Does this change if the amount of cash back (for deposit or ‘mortgage paid for 12 months’ ‘10k cash back’) if the total is more than 5% of the purchase price? Is there another way to avoid informing the lender legally – such as a separate contact for the cash back?

  • #2
    Cash back is just a marketing ploy - better to buy at 10% less, then get 10% cash.

    In fact, if the developer is offering 10% cashback it sounds like they may have problems selling at current prices. In which case, nothing to stop you from negotiating from a 20% less position.

    As for mortgage - this can only be for the actual value of the property.
    That doesn't mean sale price - just worth - so with 10% cash back I would expect the mortgage to be rated at 10% left - unless it is actually valued at the full price. If selling for less, though, I'd be surprised if it were.

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    • #3
      10 % cash back is just a crude sales ploy ! The plain fact is the property isnt worth that 10% extra !!!

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