Are There Alternatives To Gifted Deposits?

If family members wish to still gift money but do not have the funds, there are certain incentives in place to assist:

Guarantor mortgages

With this particular mortgage, a family of friend agrees to pick up any monthly payments on your behalf should you be find difficulty. However, if the person you are guarantor for misses their repayments you may risk lose savings or your home. We advise you carefully consider the risks before committing to this.

Family Springboard Mortgages

Typically, a friend or family member places a deposit on the property you are purchasing. This is usually 10% and is placed in a savings account for a set period of time before being returned. If you miss any payments there may be delays involved in returning the full money – so we advise to be careful!

Joint Mortgages

It is possible to share the burden with a family member or friend. This would make all parties equally liable for each monthly repayment. With combined incomes it will means your mortgage will extend to better properties. However, if either party already owns a property, you won’t be eligible for First Time Buyer Stamp Duty Relief. It is important to get proper advice, please contact us if you are having issues with your deposit.

With all the different options available,, it is important to make informed decisions so please call one of our advisors for help.