One Branch Mortgages
Phone: 0131 202 6582 Get in Touch

Gifted Deposits

This is where a mortgage applicant who can be a first time buyer or home mover does not have a full deposit of their own. Therefore a family member can help with a gifted deposit to help the applicant with their purchase.

The amount of “gifted Deposit” offered by the Giftor (the parents for example) to the recipient (e.g. son or daughter) can be any amount large or small and the applicants themselves can make a further deposit of their own towards the purchase if they want to reduce their borrowing further or want to get a better loan to value mortgage product. So for example if the parents were only gifting 5% then the son or daughter would HAVE to provide a another 5% deposit as a minimum in order to obtain a mortgage at 90%LTV.

This type of concessionary arrangement and transaction is NOT allowed for friends or even live-in partners or unconnected persons. Being connected on Facebook might appear to be a stronger bond than some family connections but it is not allowed either!! These types of purchases are treated as normal or “at arm’s length”.

Apply now