By 
Buying a property in your name is a milestone in everybody’s life. Go for a reality check – It is tough to arrange the whole deposit amount on your own. What if you get timely help from your family? Here comes the concept of gifted deposit. It’s nothing like a loan. You don’t have to pay back the person in any way. The lenders also understand and accept such gifted deposits for mortgages after checking all the supporting documents.
Though gifted deposit mortgages are not unacceptable, apart from parents gifting deposits, there are few other situations where you might get a gifted deposit. Every lender has a different policy concerning this. In the UK, you can consult with Mortgage Experts Online for advice on your situation. You can get help from their team of expert mortgage advisors who specialize in dealing with various complicated mortgage conditions. They are quite active on social media networks too.
A mortgage broker like them provides you with the best mortgage deals in the market with the best possible outcome in individual circumstances.
Different Types of Gifted Deposits
Lenders accept gifted deposits by blood relatives readily. But there are some cases where most lenders would be cautious of money laundering. For instance, when a friend gives you the deposit, very few lenders would accept it, and the rate offered will also differ. The paperwork and investigation would also be time-consuming.
Sometimes, when you buy the property you have been renting, your landlord might give you a discounted price. You can also get developer gifted deposits. But the lender would not permit you to have such discounts more than a certain percentage.
How to Apply for A Mortgage with Gifted Deposit?
You can easily apply for a mortgage with a gifted deposit if all your documents are in order and you follow the process. You need to submit a proof of deposit with the signature of the people who are giving it. All the lenders would require the following information in the deposit proof –
- Name of the person/people gifting the deposit
- Gift amount
- Address of the property
- Mortgage lender’s name and address
- A declaration that the person gifting the deposit has no right over the property and the deposit is strictly a gift, not a loan.
- Deposit source
- Signature and date
The gift-giver has to furnish more documents to the lender apart from gifted deposit proof –
- Identity proof
- Address proof
- Bank statements
What Happens When the Giver Dies?
Suppose your gifted deposit giver is a relative, and the person dies within seven years of gifting. Then, you may have to pay an inheritance tax on the amount of the gifted deposit according to the nil rate band.
Is There Any Limit to The Gifted Amount?
In most cases, if there are no complications, you can get a full deposit. But when your conditions are not especially good (e.g., poor credit history), you have to put forward a percentage of the deposit yourself. This percentage would vary in the case of different lenders.
You have to get a proper understanding of what might be the best solution in your situation and what mortgage programs like mortgage loan refinancing austin tx you can get. Always listen to expert advice.
