Gifted Deposit Mortgage.
You have found your dream property, but even with help to buy, you still don’t have enough savings for even a 5% deposit, is there a solution to this problem? Well a gifted deposit mortgage might be an option to consider. Lets have a closer look at how gifted deposit mortgages work and how they could help you.
Many people still struggle to get a deposit together in order to buy a property. With house prices beginning to rise, in Scotland( average house price now £153000 in Scotland*) a small deposit of 5% ,would still require funds of £7650 based on Scotland’s average house price.
Solution Deposit from Family Allowed.
Many lenders are happy to accept a gifted deposit , though most will insist it is from a close relative e.g. mother or father. The person or persons gifting the deposit must also put in writing that they will have no interest in the house now or the future. The lenders are doing this to protect themselves from any future claims by those gifting the deposit to the buyers. So it should always be clear that the buyers will be the owners with full 100% interest in the property. Other than close relatives, some lenders will still accept a builders deposit, although most lenders will have different criteria for these types of gift.
Partial gift of deposit is also acceptable to most lenders, this could occur when you have saved a certain amount towards your deposit, but still need a little help from your relatives to make up a shortfall.
If you need any help or advice on how gifted deposits work, get in touch now and we can answer any questions you may have. Remember that Mortgage Advisor Glasgow are whole of market brokers that work on your behalf, not the lenders.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.