Very handy for First Time Buyers in Middlesbrough a gifted deposit is when a family member or friend gives you a portion of or all of the 5% deposit. In terms of gifted deposits, here are the answers to a few commonly asked questions:
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 and Lender/Solicitor will be required to see evidence of the build-up of funds and also identification.
There isn’t a maximum limit on the amount of gift you can receive. All you need to do is evidence where it has come from then the lender shouldn’t have a problem with the 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.