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Gifted Deposit Mortgages

A gifted mortgage is where a lender allows the homebuyer to use money given to them by their family for a deposit. This could be a portion of the deposit required for a mortgage or the entire deposit but crucially, the arrangement is that the sum is a ‘gift’ with no requirement to repay the money. (See notes below regarding the declaration by the gifter.)

What this means for would-be first time buyers:

Getting on the property ladder traditionally requires a significant deposit, which can be hard to achieve if you are already paying rent. By receiving a financial gift from a family member, you can get on the property ladder perhaps sooner that if you had to have saved up the deposit on your own.

Gifted deposits from which family members?

At Ipswich Building Society, we recognise that families come in all shapes and sizes and therefore rather than limit gifted deposits from close family members (parents, grandparents, brothers, or sisters) we will also allow gifted deposits on our specialist  95% Loan To Value (LTV) mortgages from step-parents, step-siblings, step-grandparents, applicants’ children, applicants’ step-children, applicants’ adopted children - provided you have sustained 12 months of continuous rental history.

What’s more, with our dedicated gifted deposit mortgage, your entire deposit can come from a gifted source - and doesn’t need to be supplemented by funds of your own.

Due to our manual underwriting process, we assess each mortgage application individually, so you can rest assured that your personal circumstances will be taken into consideration by a human being, and not a computer.

Gifted Deposit Mortgages from Ipswich Building Society

We already allow gifted deposits from close family members for mortgages up to 90% LTV on our standard range of mortgage products. If you fit this criteria, take a look at our standard residential mortgages.

Our specialist Gifted Deposit Mortgages are designed for would-be first time buyers, who have been renting a property for 12 months or more, and are currently available to direct applicants in England and Wales, and via selected intermediaries.

3.45% 2 Year Fixed Rate 95% LTV (Gifted Deposit)

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  • FIXED RATE of 3.45% up until 31 July 2020 then changing to Ipswich Standard Variable Rate (currently 5.49%)
  • 5.3% APRC
  • Available for direct applicants in England and Wales, intermediaries in our heartland area and selected intermediary partners
  • Available for Purchase
  • Product is available for those borrowing in excess of 90% LTV and where the deposit is being gifted from a close family member

Representative example (this information is based on a typical application and not to your individual circumstances. It does not contain all of the details you need to choose a mortgage)

A mortgage of £189,000.00 payable over 25 years initially on a fixed rate until 31 July 2020 at 3.45%, and then on our Standard Variable Rate currently at 5.49% for the remainder of the mortgage term would require 27 monthly payments of £945.28 followed by 273 monthly payments of £1,147.36. The total amount payable would be £339,205.84 made up of the loan amount plus interest (£148,916.84), an application fee of £199, a completion fee of £800, a valuation fee of £160, a mortgage funds release fee of £35 and a mortgage exit fee of £95. This example assumes the completion fee and mortgage funds release fee are added to the loan and that interest is charged on these fees over the mortgage term. The overall cost for comparison is 5.3% APRC representative.

[This representative example is based on assumptions that the loan would start from 03 April 2018]         

15082

Completion Fee Application Fee (Payable with application and non-refundable) Valuation Fee (Payable with application) Higher Lending Charge CHAPS (Fee for transfer of funds to solicitor) Maximum Loan Amount
£800 £199 Based on property valuation - £35 £500k

No charge for overpayments of up to 50% of original loan amount
Early repayment charge period ends 31 July 2020
Overpayment of 50% or above - Early repayment charge is 3% of the overpayment
Redemption - Early repayment charge is 3% of the original loan amount

To apply, please speak to one of our expert Mortgage Consultants, based in Ipswich, on 0330 123 0773 - we're happy to discuss your application over the telephone or, if you'd prefer, we can arrange to meet with you at one of our 9 branches across Suffolk.

In the meantime, you may find it useful to look at our mortgage calculator to get an idea of what your monthly payment may be.

To apply for this product visit our Apply and Track section, or give our intermediary sales team a call on 0330 123 1073.

To see all of our current mortgage products, please download our mortgage product rate guide.

Please note our rate guide is an Excel document. Click here to download Excel Viewer from Microsoft, where you can open, view and print Excel documents even if you don't have Excel installed.


2.89% 2 Year Discount Rate 95% LTV (Gifted Deposit)

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  • VARIABLE RATE currently 5.49% with a discount of 2.60% until 2 years from completion date then changing to Ipswich Standard Variable Rate
  • 5.2% APRC
  • Available for direct applicants in England and Wales
  • For our Intermediary partners, products are available to Prestige members, selected partners nationally and all intermediaries based in our heartland area.
  • Product is available for those borrowing in excess of 90% LTV and where the deposit is being gifted from a close family member
  • Representative example (this information is based on a typical application and not to your individual circumstances. It does not contain all of the details you need to choose a mortgage):

A mortgage of £142,500.00 payable over 35 years initially on our Standard Variable Rate with a discount of 2.60% until 2 years from completion and then on our Standard Variable Rate currently at 5.49% for the remainder of the mortgage term would require 24 monthly payments of £539.83 followed by 396 monthly payments of £753.57. The total amount payable would be £311,788.64 made up of the loan amount plus interest (£168,834.64), an application fee of £199, a valuation fee of £125, a mortgage funds release fee of £35 and a mortgage exit fee of £95. This example assumes the completion fee and mortgage funds release fee are added to the loan and that interest is charged on these fees over the mortgage term. The overall cost for comparison is 5.2% APRC representative.

[This representative example is based on assumptions that the loan would start from 03 April 2018]

11069

Completion Fee Application Fee (Payable with application and non-refundable) Valuation Fee (Payable with application) Higher Lending Charge CHAPS (Fee for transfer of funds to solicitor) Maximum Loan Amount
FREE £199 Based on property valuation - £35 £500k
  • No charge for overpayments of up to 50% of original loan amount
  • Early repayment charge period ends 2 years from date of completion
  • Overpayment of 50% or above - early repayment charge is 1% of the overpayment
  • Redemption - early repayment charge is 1% of the original loan amount

To apply, please speak to one of our expert Mortgage Consultants, based in Ipswich, on 0330 123 0773 - we're happy to discuss your application over the telephone or, if you'd prefer, we can arrange to meet with you at one of our 9 branches across Suffolk.

In the meantime, you may find it useful to look at our mortgage calculator to get an idea of what your monthly payment may be.

To apply for this product visit our Apply and Track section, or give our intermediary sales team a call on 0330 123 1073.

To see all of our current mortgage products, please download our mortgage comparison guide.

Please note our rate guide is an Excel document. Click here to download Excel Viewer from Microsoft, where you can open, view and print Excel documents even if you don't have Excel installed.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

About our Gifted Deposit Mortgages

  • A minimum of 12 months’ rental history required
  • Minimum of most recent 3 months bank statements required
  • No automated credit scoring (but we do expect a good credit history)


The declaration by the gifter

  • It is an unconditional and non-refundable gift
  • That no interest is to be charged
  • They do not require any repayments to be made
  • They have no rights, interests or claims in the property whatsoever
  • They do not hold any registered legal charge over the property
  • They will not reside in property now or in the future
  • That they have proof that the deposit monies are available in a UK based account
  • They understand that if the gifted deposit exceeds £100,000, they will be required to take Inheritance Tax Advice for which they will be responsible for meeting the cost

Your home may be repossessed if you do not keep up repayments on your mortgage.