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Aldermore loosens criteria to allow gifted deposits

  • 04/03/2013
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Aldermore loosens criteria to allow gifted deposits
Aldermore has taken the decision to loosen its criteria to allow full family gifted deposits on its range of mortgage products.

The lender has changed its criteria to allow parents to contribute a full deposit for their child. Previously a gifted deposit could not make up the full deposit amount for a mortgage with the bank.

The changes apply to both residential and buy-to-let products.

Charles Haresnape, managing director of residential mortgages at Aldermore, said: “To date, gifted deposits usually involve a builder, vendor or parent making a cash contribution, as well as the applicant also providing a deposit themselves.

“Aldermore will now allow a close relative or step relative to contribute the full deposit, meaning the applicant can use their hard-earned cash for other house-buying expenses.

In a separate move, Aldermore has significantly extended the offer period allowable on new build properties from 80 to 180 days. The lender will also remove the criteria requiring 12 months of rental payments.

“We are also mindful that borrowers applying for new build properties can sometimes find that their chosen property is not complete before the offer period runs out,” Haresnape added.

“We have therefore extended the offer period on new build properties from 80 to 180 days and we no longer require evidence of 12 monthly rental payments from applicants.

“These changes are further examples of ways in which Aldermore is doing all it can to help potential house buyers acquire a home of their own.”

Elsewhere, Virgin Money has also lowered rates on a number of its mortgage products. The lender has cut its two-year and five-year fixed rate products by 0.06%. Two-year fixes at 60% LTV are available at 2.28% while a five-year fix on offer at 2.99% up to 70% LTV, both with a £995 arrangement fee.

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