- The bank of mum and dad (or nan and grandad) can still be open thanks to alternative lenders.
- Borrowers who feel they have no entry to borrowing without help, are not always penalised for not being able to save.
- Smaller lenders are the savior with flexible application criteria and a case-by-case approach
Leading specialist mortgage provider Saffron Building Society would like to remind borrowers, that not all lenders are penalising those unable to save for their deposit – as the industry starts to tighten its criteria.
With news breaking that well-known high street lenders are now changing the criteria for gifted deposits, those with limited savings and struggling to save their deposits may be feeling deflated. With criteria requiring that the borrower prove that they have saved 75% of their deposit themselves, even on a good income for their local area – they may still find it difficult to get the product they require. Saffron Building Society, a specialist mortgage lender, are keen to remind those looking for a new mortgage, that gifted deposit mortgages are still available through a local broker – they just need to know what to ask for.
Laura Bright, senior product manager at Saffron Building Society explains: “Borrowers may be feeling like the lifeline for a new mortgage is being cut, but they should not despair. High Street and larger lenders may be tightening the criteria, but we have a range of products at Saffron Building Society that do allow for a gifted deposit. Whether this is from the bank of Mum and Dad, or Nan and Grandad, we base our decisions on a case by case basis. As we are not a high street lender, many will not have heard of us, but if you contact a local broker they will be able to provide more details about the range of products we have available – one of which could be perfect for you.”
In addition to gifted deposits, Joint Borrower Sole Proprietor mortgages are also still available and could offer a totally different approach to borrowing.