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.
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, particularly if you are a First Time Buyer in Durham.
There isn’t a maximum limit on the amount of gift you can receive. It can be part of the 5% minimum deposit, the full thing and even more than 5% if the person gifting is feeling generous.