Gifted Deposit Mortgage Advice in Liverpool

What is a gifted deposit?

A Gifted Deposit can either be the full amount or a partial amount of the required deposit to put towards a property, gifted to you with an agreement that it is not a loan and you do not owe them any money down the line.

How can gifted deposits help?

Gifted deposits come in very handy for those who have saved enough money for their monthly repayments, but possibly due to a lower income, aren’t able to afford the initial deposit that is required for the property you are hoping to purchase. Having more gifted deposit available may also allow for you to receive better mortgage rates.

Who can gift The deposit?

Commonly, it’s parents (birth and adopted) and carers who are able to gift you the deposit. This is often known in the industry as the “bank of mum & dad”. There is the potential for other family members to gift you the deposit, though this is dependent on specific lenders and would require care when trying to find the most appropriate mortgage lender.

Do your parents know you need help?

When speaking to customers, we sometimes find that they aren’t aware that their parents can help with their mortgage, or don’t feel like they can ask them for help. The reality is that most parents are willing and ready to help out their children, helping them to take that first step onto the property ladder.

Statistically, taking out a mortgage works out a lot better for people than renting does, thanks in part to you being able to possibly pay less per month on your repayments over your rent. The deposit could come from inheritance, with some parents known to gift it earlier on in life if they already have enough in savings or have released a certain amount of equity from their own family home.

Gifted deposit vs loans

A lot of lenders won’t accept a loan as a means of paying your deposit due to the lender being unsure that you’d have enough free income to pay back both the loan and the mortgage simultaneously.

Is there a maximum or minimum gifted amount?

There isn’t a limit on the maximum amount you can receive as a gift, although there is at least one lender that insists you put in at least 5% deposit from your own personal funds.

Who can benefit from a gifted deposit?

The people who will receive the most benefits from this tend to be First Time Buyers and Home Movers. It can also be useful when used alongside the Help to Buy Scheme, as the required 5% deposit, depending on the lender, can be paid through the means of gifted deposit.

What proof is required?

Generally speaking, all lenders will require a gifted deposit form. Depending on the lender, you may be asked to provide further proof and ID (things like a passport or bank statements).

Offering Gifted Deposit Mortgage Advice in Liverpool