With higher property prices and most lenders accepting no less than a 5% deposit, it’s no wonder that first-time buyers are turning to family to help them to raise the necessary deposit funds. In fact, in over 50% of cases, first-time buyers had received financial help from a family member. If you think your parents, grandparents or a sibling may be able to help you raise the necessary cash to move, then this can be a great way to reach that first rung of the ladder.
Whilst many mortgage lenders will only lend to those who have raised a deposit themselves, there is a substantial amount of lenders who will, so it should be quite easy to find a ‘gifted deposit mortgage’ on the high street. The best way to start is to speak to us so that we can scour the latest deals to find you the most suitable product.
If you are a parent thinking about helping out your child with their property purchase, there are a number of ways you can do this. If you don’t have available funds in a savings account, then you might consider releasing some of the equity in your home, re-mortgaging, or taking out a personal loan. However, it’s important to know the risks involved, so to speak to us to ensure you get the right loan or re-mortgage product. A mortgage advisor will also advise you of the tax laws associated with money given as a gift. Any gifted deposit must be brought to the attention of all solicitors and lenders concerned. Never attempt to conceal a gifted deposit as it could risk your chances of acceptance and affect your credit rating.