Consessionary purchase AND gifted deposit

Donnah2708

I’m looking for some help with this issue please.
We have been given the opportunity to purchase my mums house at a consessionary price, with the house valued at £250000 and the purchase price being £150000. We have been gifted a £15000 deposit from my mum also.
I went through the mortgage application process over the phone with Barclays last night and all was good and well (for the first 2 hours) was accepted for the mortgage, I then mentioned the gifted deposit to them and they said that it is their policy not to accept the gifted deposit of £15000 as we needed to have saved that money ourselves seeing as the house was a consessionary purchase !!!9785;!!!65039;
Anyone know if other banks will accept the gifted deposit or is this just not possible? I have the option of going to a broker to arrange the mortgage, but as he will cost £375 and I’m hoping to do this myself. Thanks in advance.

Browntoa

You need to see a broker

jennhg88

A good broker is worth their weight in gold, definitely seek advice.

TrickyDicky101

What LTV were you proposing for your purchase /borrowing? I don't understand your post because surely the whole point of a concessionary purchase is that the 'deposit' is effectively the difference between what the house is 'worth' and the price you are paying for it? Maybe I have misunderstood.

Donnah2708

Barclays say that they still need a deposit, even though we are buying at a consessionary price (they say they want 5%, so £7500) but that that deposit has to have been saved up by us and not gifted. Just wondering if there are banks willing to lend either with no deposit (based on market value) or will accept the 5 or 10% deposit even though it’s been gifted.

TrickyDicky101

Well, that's the kind of knowledge and experience you pay a broker for.

Maybe you could just go for 90% LTV products with your gifted deposit of £15k and not worry about 'concessionary' purchases?

kingstreet

Donnah2708 wrote: »

Barclays say that they still need a deposit, even though we are buying at a consessionary price (they say they want 5%, so £7500) but that that deposit has to have been saved up by us and not gifted. Just wondering if there are banks willing to lend either with no deposit (based on market value) or will accept the 5 or 10% deposit even though it’s been gifted.

Yes. There are.

Sack Barclays. They are a nightmare to deal with as well.

enthusiasticsaver

I can't see the issue with the deposit. Most lenders will accept a gifted deposit so long as the person gifting the money writes a letter saying they hold no financial interest in the property and the money is a gift and not a loan. Re the concessionary price, not sure why that would be an issue either but we have never got a mortgage through Barclays. As others have said go to a broker who will know the different lenders policies re gifted deposits and discounted sale prices.