Gifted Deposit Donor has to be a homeowner

Izzy_Ziddi

My cousin has appointed a Broker to assist her in purchasing a Buy To Let property with a mortgage amount of £38k and her deposit monies of £15k partially includes gifted deposit from family. The lender The Mortgage Works hascbeen very paticular in knowing the source of deposit and has advised that only two donors are allowed and both have to be homeowners with 3 months bank statements showing how he/she accured the funds. Is this normal practice to ask that the donors have to be homeowners? I thought this requirement would be necessary if it was a Guarantor Mortgage?

amnblog

We do not know the case, the Broker does, but TMW say the donor must be a homeowner or have savings above the deposit amount required.

Thrugelmir

Izzy_Ziddi wrote: »

Is this normal practice to ask that the donors have to be homeowners?

Does this pose a problem? People are known to dream up all sorts of schemes to circumnavigate banks lending rules. Underwriters will ask for what they consider neccessary depending on the circumstances of the application.