What is a Gifted Deposit Mortgage in Derby?

Gifted Deposit Mortgage Advice in Derby

Due to gifted deposits becoming more popular, particularly amongst First Time Buyers in Derby, it is important that a person who receives one knows how to go about utilising it and pros and cons attached.

Who can gift the deposit?

It tends to be “bank of Mum and Dad” that gifts the deposit to the applicant and this is acceptable to most Lenders.  In addition, your Mortgage Broker in Derby and lender/solicitor will be required to see evidence of the build-up of funds and also identification.

Can it be a loan rather than a gift?

In almost all circumstances it needs to be a gift and the donor will sign a letter to confirm the funds are non-refundable. They will not put a “charge” on the property you are buying. Be careful though, taking out a personal loan just before applying for a mortgage will probably have a downward effect on your credit score. This could lead to a mortgage application being rejected. Also, the monthly payments for the loan will have to be taken into account by the mortgage lender for affordability.

How much can be gifted?

There isn’t a maximum limit on the amount of gift you can receive though, typically a normal deposit is around 10% of the purchase price so if you receive a gifted deposit figure out whether it matches what you’ll need or whether you may need to save a bit on the side.

Derbymoneyman.com & Derbymoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2022 Derbymoneyman

Derbymoneyman – 19 St Christophers Way, Pride Park, Derby, DE24 8JY.

Moneyman Logo







Moneyman Logo




Moneyman Logo

Ask Your Question





    Moneyman Logo

    Moneyman Logo







    Moneyman Logo

    Book your Free Consultation

    7 Days 8am - 10pm

    Moneyman Logo

    Moneyman Logo