July 2024
Newsletter
June has been a good month, inflation finally hit the 2% target and yet the base rate remained the same at 5.25%,
We have the general election coming up at the beginning of July.
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In this months update, we'll be giving a overview of the UK mortgage market.
We'll also be talking about gifted deposits, how they work and when they're accepted.
Latest News
It's felt much the same as the previous few months with interest rates fluctuating very little. However, things are looking a bit brighter.
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The property market is moving, and general election is just about to take place.
It's not unusual to see the market quieten down before the general election takes place. I think we're all waiting to see what happens next.
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What we do know is that we have hit the inflation target, which is very welcome news. Property prices are increasing again and rental prices are stabilising.
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All are very positive signs that we are on track for the predicted Bank of England base rate reduction in August.
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Only time will tell.
Mortgage Rates Today
How Do Gifted Deposits Work?​
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Those who are lucky may have some help with their deposit in the form of a gift from a family member or friend.​
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The important thing to know about a gifted deposit is that the gifter should not transfer the funds into your account. In most cases a lender will simply require disclosure of the deposit being gifted by the family member along with a gifted deposit form and possibly a bank statement.
The gifter will then transfer the funds directly to the solicitor prior to exchange.
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A lot of times, a gifted deposit will be a case of a parent or grandparent gifting some of the deposit. This is the most straightforward situation, but it's not always that simple.
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For example, if your parents are abroad and the funds are in a different currency, some lenders will accept this, some will require 3-months bank statements from their account to evidence proof of funds.
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I had a case recently where the client was receiving a gift from a friend rather than an immediate family member. Most lenders will require the gifter to be an immediate family member, Santander were one of few that would allow for a friend to gift the deposit.
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In cases where the gift is supplied by a partner who will be living in the home but will not be party to the mortgage, most lenders will not allow for this. However, Halifax will.
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So, as is the theme with many of these articles, there is a whole world of possibility out there. Each lender is different and it's important to know which lenders will work for your specific circumstances.
For that, we're always here to help.
Jen Boulter