The struggles of first time buyers in recent years are well known. Rising property prices, especially in areas in and around London and the South East, has squeezed incomes and made it almost impossible for many young people to save enough of a deposit to buy a house.
This phenomenon has led to many parents and grandparents gifting all or part of the deposit to their children, especially in situations where the applicant can easily afford the monthly repayments on a mortgage but is struggling to get a deposit together.
We’re happy to consider applications where the deposit is a gift – we can accept 100% gifted deposit on applications up to 95% LTV, including for shared ownership. For gifted deposit loans above 90% LTV, we require the applicant to have 12 months’ rental history.
The deposit itself can come from any close family member, including a more extended mix such as step-parents/children/siblings or adoptive parents/children, and must be clearly evidenced in a UK bank account or UK-based investments.
The donor(s) will also be required to confirm that the monies represent a non-repayable gift and that they will have no interests or claim to the property being purchased.
If you have clients wanting to get on the housing ladder, speak to us on 0330 123 1073. Click here to view oiur current residential mortgage products.