Principality Building Society has updated its criteria, extending the range of family members who can provide gifted deposits and equity.
The society has extended its current definition to include all family members and stepfamily.
This decision has been made, not only to respond to changes in the market which has seen an increase in the number of mortgage deposits funded in part by family and friends, but also, to align its mortgage criteria with underwriting decisions made on a case-by-case basis.
Government data for 2023-241 indicated that first time buyers continue to receive help from family and friends to purchase their first home.
The research found that 31% received this support from family during that period.
The extension in the definition follows the society’s introduction of boosts for first time buyers, including family boosts and the introduction of a 5.5x loan to income (LTI).
Helen Lewis, national intermediary manager, at Principality Building Society, said: “Following consultation with brokers, we have updated this piece of criteria to extend the support available to buyers looking to secure their new home.
“This is the first change ahead of a busy 2025 for us as we look to continue to support brokers and their clients.”
