LTV Deposit Restrictions

bowsh9

Hi All,

I have a mortgage application appointment with Barclays on Monday, the amount I want to borrow is subject to a 75% LTV restriction. Which I have, Most of this is personal savings but a small portion is gifted. Will this be okay? It does mention something in the terms about the need for it to be a personal amount but is unclear. Any ideas?

Thanks

Yorkie1

Who is giving you the gifted money?

Not sure about the "personal amount" reference - what is the exact wording?

tvfreek

Should be fine, dependent on amount of gift may need letter from donor.

amnblog

Provided the gift is coming from a close family member you should be ok.

bowsh9

Thanks all,

I think I got myself confused by the wording. Probably to do with the help to buy etc.

kingstreet

You buying a newbuild on HTB - Equity Loan?

bowsh9

No, standard residential mortgage. The T's & C's mention the 25% has to be a personal amount and as some of the deposit is gifted it isn't personal.

GMS

Who is gifting the money?

bowsh9

Parent & sibling

bowsh9

Deposit
Where a property is being purchased, applicants are expected to provide a deposit of at least 10%* of the purchase price
*The personal stake may vary depending on specialist schemes or circumstances where loan to value restrictions apply.
The applicants must declare the source and amount of their deposit on the application form. Usually, the deposit will be from the applicants’ own savings, the sale of their previous property, a gift from relatives or a combination of these sources.
It is not acceptable for applicants to resort to secondary borrowing to fund the deposit, for example, by raising a personal loan. The only exceptions to this rule are:
Where Barclays have agreed to provide a short term loan
Where the applicant is raising a deposit from the equity in another property
For all purchase applications with an individual borrowing requirement in excess of £1,000,000 the applicant must provide documented proof of the source of the deposit.

kingstreet

Yes, so your deposit can be made up of savings and gifts. That's the definition of personal.

It can't include any vendor's gifted deposit, or borrowed money.