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How a gifted deposit mortgage can help your FTB clients

First time buyers looking to get on the housing ladder could be forgiven for thinking it is a near impossible task – just pulling together a lump sum deposit can be tricky business especially if you’re already shelling out for rental payments. That’s why more and more parents, and grandparents, are opting to support younger family members with a gift of funds to be put down as a deposit on a property – a welcome boost to get a foot on the ladder.

Here’s three things you need to know about our gifted deposit mortgage criteria:

1. An applicants’ deposit doesn’t need to be entirely made up of gifted funds and can include a personal contribution.

2. Funds can be gifted from close family members such as parents, grandparents, brothers or sisters plus step-parents, step-siblings, step-grandparents, applicants’ children, applicants’ step-children or applicants’ adopted children.

3. Gifted funds must be unconditional and not need to be repaid at any point. We will require the benefactor to sign a number of declarations and state they will have no rights over the property. For gifts over £100,000 we will require the benefactor to seek advice on inheritance tax.

Click here to view our current range of residential mortgages.