Gifted Deposit Mortgages
Due to the operational challenges created by the COVID-19 pandemic, we have temporarily restricted our lending criteria and withdrawn a number of our mortgage products. Visit the FAQs for more information.
A gifted mortgage is where a lender allows the homebuyer to use money given to them by their family for a deposit. This could be a portion of the deposit required for a mortgage or the entire deposit but crucially, the arrangement is that the sum is a ‘gift’ with no requirement to repay the money. (See notes below regarding the declaration by the gifter.)
What this means for would-be first time buyers:
Getting on the property ladder traditionally requires a significant deposit, which can be hard to achieve if you are already paying rent. By receiving a financial gift from a family member, you can get on the property ladder perhaps sooner that if you had to have saved up the deposit on your own.
Gifted deposits from which family members?
At Ipswich Building Society, we recognise that families come in all shapes and sizes and therefore rather than limit gifted deposits from close family members (parents, grandparents, brothers, or sisters) we will also allow gifted deposits on our specialist 95% Loan To Value (LTV) mortgages from step-parents, step-siblings, step-grandparents, applicants’ children, applicants’ step-children, applicants’ adopted children - provided you have sustained 12 months of continuous rental history.
What’s more, with our dedicated gifted deposit mortgage, your entire deposit can come from a gifted source - and doesn’t need to be supplemented by funds of your own.
Due to our manual underwriting process, we assess each mortgage application individually, so you can rest assured that your personal circumstances will be taken into consideration by a human being, and not a computer.
Gifted Deposit Mortgages from Ipswich Building Society
We already allow gifted deposits from close family members for mortgages up to 90% LTV on our standard range of mortgage products. If you fit this criteria, take a look at our standard residential mortgages.
Our specialist Gifted Deposit Mortgages are designed for would-be first time buyers, who have been renting a property for 12 months or more, and are currently available to direct applicants in England and Wales, and via selected intermediaries.
About our Gifted Deposit Mortgages
- A minimum of 12 months’ rental history required
- Minimum of most recent 3 months bank statements required
- No automated credit scoring (but we do expect a good credit history)
The declaration by the gifter
- It is an unconditional and non-refundable gift
- That no interest is to be charged
- They do not require any repayments to be made
- They have no rights, interests or claims in the property whatsoever
- They do not hold any registered legal charge over the property
- They will not reside in property now or in the future
- That they have proof that the deposit monies are available in a UK based account
- They understand that if the gifted deposit exceeds £100,000, they will be required to take Inheritance Tax Advice for which they will be responsible for meeting the cost