22 June 2023

No deposit, help is out there!

By Beverley Building Society

As a smaller Society, we are always looking at ways to help the underserved, or exploring alternative lending approaches that allow us to adapt to the changing landscape.  Our primary focus has always been how can we help people get on the property ladder, however saving for a deposit is becoming increasingly more difficult, as the cost of almost everything has increased in the last year, while house prices have reached an all-time high. 

The impact of this means we are seeing more and more first-time buyers calling on the ‘Bank of Mum and Dad’ to help fund the deposit. This is typically a cash gift, but what happens if Mum and Dad don’t have the cash available, or they don’t want to deplete their own savings right now?

At Beverley Building Society there are options. If the parents (or other close family members) have equity in their home, they can use part of this equity to offer as security for the deposit.  Our Property Assist mortgage allows us to lend 100% of the purchase price of a property to first-time buyers, who don’t have their own deposit. We offer the opportunity for their parents (or other close family members) to secure the equivalent of a 20% deposit against their home in the form of a legal charge.  We can still help if their parents still have a mortgage outstanding, we just stipulate that the total cost of their mortgage, plus the charge on their home cannot exceed 50% LTV.

We make this type of complex lending straightforward, by offering manual underwriting and providing you with direct access to our underwriters, so you and your client have peace of mind throughout the process.

Do you have a case to discuss, or would you like to know more? Then please contact Beverley Building Society’s Head of New Business, Simon Glass, on 07355 034054, or the Society’s mortgage team on 01482 881510.


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