Previously, the bank required customers to contribute a minimum 5% deposit from their own personal funds. Gatehouse Bank will now accept HPP applications with no minimum deposit requirements up to a maximum finance-to-value (FTV) of 75%.
Following the change, if a customer wished to buy their parents’ home for £225,000, for example, with the property holding a market value of £300,000 they would be able to access the full £225,000 finance required from Gatehouse Bank.
The £75,000 difference between the market value and the purchase price is treated as gifted equity and used in lieu of a deposit from the customer’s own funds.
Applications remain subject to a surveyor confirming the true market value of the property and customers must meet standard affordability criteria independently.
Gemma Donnelly (pictured), head of customer propositions at Gatehouse Bank, said: “We believe that today’s changes will remove an existing barrier to those looking to take their first step, or move up, the property ladder through the support of family members while also increasing our competitiveness within the UK home finance market.”
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Leeds BS adds cashback
Leeds Building Society has launched a £200 customer cashback to reward loyalty amongst mortgage members while supporting intermediary partners with customer retention.
Martese Carton, director of mortgage distribution at Leeds Building Society, said: “Brokers play a vital role advising customers and ensuring that they get the right mortgage product for their changing needs.
“Our new cashback recognises both the value of professional advice and the loyalty of customers who choose to stay with us through their broker relationship. It also highlights how lenders and brokers can continue to work together to achieve the best possible outcome for the customer.”
