Latest News 31st August 2007

All 15% Gifted Deposit Schemes Withdrawn

In mid August 2 large lenders in the USA became bankrupt. These lenders provided all, or a substantial amount of the funding, for all 4 UK lenders who had been offering mortgages and accepting a 15% builders gifted deposit as full deposit. The lenders concerned are Unity Home Loans, Victoria Mortgages, Infinity and UX mortgages. This means there is no lender currently accepting a 15% builders gifted deposit.

Alternative 1

We have a lender who will accept an unlimited gifted deposit, so long as the investor provides a minimum 5% deposit from their own savings. The rates start at 5.78%, there is no rental calculation and there is a 1.5% lenders arrangement fee, which can be added to the mortgage. You can self certify and there is no need for an accountant.

Alternative 2

Use a Bridging loan to buy and remortgage. If you remortgage immediately, ie same day as purchase, the Bridging cost will be approximately 2% and currently the lowest interest for remortgage is 5.19% with maximum 85% loan to value.

The interest rates have been moving up quickly over the last month and they continue to rise as lenders withdraw their current rates at very short notice, sometimes within hours. If you are buying or remortgaging at the moment you are urged to speed the process through as quickly as possible before your rate is withdrawn.