In recent years, the mortgage market in Middlesbrough has witnessed a significant shift in the way prospective homebuyers secure their dream homes. Among the various trends that have emerged, one of the most prominent is the increasing popularity of gifted deposits. In this article, we will delve into the reasons behind this surge in gifted deposits and explore the benefits and considerations associated with this practice.
Why Are Gifted Deposits on the Rise?
A Helping Hand from Family and Friends
One of the primary reasons behind the growing popularity of gifted deposits in Middlesbrough is the rising property prices in the area. As house prices continue to climb, it has become increasingly challenging for first time buyers in Middlesbrough to save up for a substantial deposit on their own. Gifted deposits offer a lifeline, allowing buyers to get on the property ladder with the assistance of their loved ones.
Mortgage Rates
Another factor contributing to the rise of gifted deposits is the competitive mortgage rates available in the current market. By providing a gifted deposit, buyers can often access more favorable mortgage deals, potentially saving them money over the life of their mortgage. This incentive encourages both buyers and their benefactors to explore this option.
The Benefits of Gifted Deposits
Easing the Path to Homeownership
Gifted deposits provide a practical solution for individuals and families who aspire to own their homes but face obstacles due to high deposit requirements. By receiving financial support from relatives or friends, buyers can secure a property sooner and build equity in their homes over time.
Lowering Monthly Mortgage Payments
One of the key advantages of using a gifted deposit is the potential to reduce monthly mortgage payments. With a larger deposit, buyers may be eligible for lower interest rates, resulting in more affordable monthly instalments. This can significantly improve their financial stability and long-term affordability.
Expanding Property Options
Gifted deposits can open up a wider range of property options for buyers. With a larger deposit, buyers can access properties that may have been previously out of their budget. This can lead to greater choice and the ability to find a home that truly meets their needs and aspirations.
Book a Free Mortgage Appointment
Once you have a gifted deposit saved, as a mortgage broker in Middlesbrough, we have an incredibly valuable and in-depth knowledge of the various mortgage lenders’ criteria. Using this knowledge that we have, we are then able to take a look at your income, expenditure, and credit history, in order to recommend the absolute best mortgage deal for your circumstances.
Date Last Edited: October 2, 2023
