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Gifted Deposit FAQ’s | Mortgage Advice in Leicester

Gifted Deposit Explained | MoneymanTV

What is a gifted deposit?

A gifted deposit is either the full amount or a portion of the assurance you need, granted to you as a gift with an agreement that you don’t have to repay the person who has given it to you.

How can gifted deposits help out?

Gifted Deposits come in useful when you have been able to save enough for your monthly repayments but have been struggling to afford the initial deposit, something that’s common for people on smaller incomes.

Obtaining more gifted deposits available may also allow you to receive potentially better rates from a mortgage lender.

Who can gift the deposit?

We frequently find that it is mainly parents (birth and adopted) and carers who can gift you the deposit. You may see this referred to online as the “Bank of Mum & Dad”.

Other extended family members could also get considered when looking at the option of a gifted deposit.  It is significantly much dependent on individual lenders so your dedicated mortgage advisor in Leicester would need to be cautious.

Do your parents know you need help?

We frequently find that customers have no idea that their parents can help them out with their mortgage, or they don’t feel like they can ask them to help out.

In truth, most parents are more than pleased to be able to help their children, wanting them to get on the property ladder and live a comfortable life in a property they possess.

Statistically, taking out a mortgage often will work out better than renting, due to the potential for you to pay less per month.

The deposit usually comes from inheritance, although parents can sometimes gift it earlier on in life if they already have enough saved or have released a certain amount of equity from their own home.

Gifted deposit vs loans

Most lenders won’t agree to accept a loan to pay off your deposit. It will be down to the lender being unsure that you’d have enough disposable income to pay back both the loan and the mortgage simultaneously.

Is there a maximum or minimum gifted amount?

There is no limit on the amount that someone can give you as a gift, with more deposit often giving you better rates, though we are aware of at least some lenders will insist you put in at least 5% deposit from your income.

Who could benefit from a gifted deposit?

The people who reap the most advantages from this tend to be First Time Buyers and Home Movers. It can also be beneficial when used in combination with the Help to Buy Scheme. As the required 5% deposit, depending on the lender, can be paid via gifted deposit.

What proof is required?

First and foremost, all lenders will require a gifted deposit form. Dependent on the lender, you might get asked to provide additional proof and ID.

Our mortgage advice service in Leicester

As a trustworthy Mortgage Broker in Leicester, we always aim to provide an outstanding level of customer service. Through a fast and friendly service, to be responsive at all times.

We always rise above and beyond for our customers, no matter their mortgage situation. When someone approaches us for Mortgage Advice in Leicester, we still consider every case that we get faced with.

If you want to see more of our fantastic customer reviews, feel free to check out our reviews page. We take pride in our customer service, and it’s what keeps us moving forward as a business.

Availability

Your Mortgage Broker in Leicester is available from 8 am – 10 pm, seven days a week! Don’t ever feel free to get in touch; our advisors will be waiting by the phone for your call.

Customer service is at the heart of our company, and we work solely for you. For a free mortgage consultation. Please fill out our form on the contact us page or give us a call. We can’t wait to hear from you!

Leicestermoneyman.com & Leicestermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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