Ipswich Building Society has launched two gifted deposit products, enabling access to up to 95% loan-to-value mortgages without requiring deposits to be supplemented or matched by the applicants own funds.
Targeted at first-time buyers with a continuous rental history of 12 months or more, the revised rules extend the criteria around family members offering support.
The society’s standard residential products are already available for gifted deposits up to 90% LTV, restricted to funds from parents, grandparents and siblings. Products will continue to be available on this basis for applicants meeting this criteria.
According to the English Housing Survey, one in three first-time buyers used a gift or loan from a friend or family member for their home deposit in 2017.
Richard Norrington, chief executive of Ipswich Building Society, said: “We recognise how difficult it is for some borrowers to get on the housing ladder and our approach, based on making sensible lending decisions using expert individual underwriting, will mean that potentially more younger people and first-time buyers will be able to access the mortgage market.
“Tackling mortgage misfits, those who are under-served by the automated high street lenders, remains one of our priorities.”
The 95% loan to value gifted deposit products will be available for direct applicants across England and Wales, and via selected intermediaries. The products are priced the same as the society’s existing 95% loan to value mortgages with both a fixed and discount option for two years.