Aldermore has relaxed its lending criteria and will now allow family members to gift full deposits.
The lender will now allow close or step relatives to contribute the full deposit on a property for residential and buy-to-let mortgages. Applicants were previously required to contribute at least 5 per cent of the mortgage towards the deposit.
Close relatives are defined as parents, grandparents, siblings or children.
Aldermore has also extended the offer period on new build properties. The previous offer period of 80 days has been extended to 180 days and evidence of 12 monthly rental payments is no longer required.
Aldermore director of residential mortgages Charles Haresnape says: “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.
“We are also mindful that borrowers applying for new build properties can sometime find that their chosen property is not complete before the offer period runs out. 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.”