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

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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.

OUR SOLUTION

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.