As the industry starts to tighten its criteria, Saffron Building Society is affirming that there is still hope for borrowers as we ease out of lockdown.
With well-known high street lenders now changing the criteria for gifted deposits, those with limited savings and struggling to save their deposits may be feeling deflated.
In fact, some lenders require the borrower to prove that they have saved 75% of their deposit themselves. Even on a good income for their local area, they may still find it difficult to get the product they require.
In light of this news, specialist mortgage lender Saffron Building Society is keen to remind those looking for a new mortgage that gifted deposit mortgages are still available through a local broker – so long as they know what to ask for.
“Borrowers may be feeling like the lifeline for a new mortgage is being cut, but they should not despair,” Laura Bright, senior product manager at Saffron Building Society, explains.
“High street and larger lenders may be tightening the criteria, but we have a range of products at Saffron Building Society that do allow for a gifted deposit. Whether this is from the bank of Mum and Dad, or Nan and Grandad, we base our decisions on a case by case basis.”
In addition to gifted deposits, joint borrower sole proprietor mortgages are also still available and could offer a completely different approach to borrowing.