Buy-to-let mortgage with gifted deposit from father to sons

28th March 2018
Buy-to-let mortgage with gifted deposit from father to sons

If you’re looking to help your children buy property, you may be wondering about helping them secure a mortgage with gifted deposit.

We frequently receive enquiries from clients who have read our market analyses and case studies online and then approach a broker directly for further assistance. I recently received an enquiry from a client who was looking to help his children onto the property ladder in the UK but was unsure about the best route forward.

My client was a foreign national living in Kuwait with two sons, who were both in their mid-20s. The property in question would be a new build buy-to-let purchase in London, due to complete mid-2018. The father wanted to gift a 35% deposit to his sons, enabling them to become buy-to-let landlords.

There were numerous difficulties with this case. Both the father and his sons were Kuwaiti clients with limited footprints in the UK market, and the sons were first-time buyers, which can create issues when securing a mortgage as it is unusual to buy a buy-to-let as a first property. We also needed to find a lender who would be happy to offer a mortgage with a gifted deposit, which is something not all lenders are happy to do.


Fortunately, we at Enness work with a range of lenders who are experienced in dealing with clients from the Gulf Corporation Council (GCC). I found a lender with an international team, who were happy to work with Kuwaiti clients, and could work with them to arrange a mortgage using a gifted deposit.

I secured a 2-year tracker rate of 3.19%, over a 30-year term, at 65% loan to value (LTV). If you are a Middle Eastern hoping to invest in UK buy-to-let property, the Enness Mortgages team has a wealth of experience working with such clients and would be delighted to advise you further. We can also advise on the possibility of a mortgage with a gifted deposit.

Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.

Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.