Gatehouse Bank removes deposit requirement for discounted family purchases
The change means customers can now access finance up to 75% finance-to-value (FTV) without contributing a deposit from their own funds.
Gatehouse Bank has removed its minimum deposit requirement for Home Purchase Plan customers purchasing a property below market value from a family member through a discounted family purchase arrangement.
The change means customers can now access finance up to 75% finance-to-value (FTV) without contributing a deposit from their own funds, provided the difference between the property’s market value and purchase price is treated as gifted equity.
Previously, customers using a discounted family purchase were required to provide a minimum 5% deposit from their own resources.
Under the revised criteria, a customer purchasing a property worth £300,000 from a family member for £225,000 could obtain the full £225,000 finance required from Gatehouse, with the £75,000 discount treated as equity within the transaction.
Applications remain subject to an independent valuation confirming the property’s market value, and customers must continue to meet the bank’s affordability requirements.
Gemma Donnelly, head of customer propositions at Gatehouse Bank, said: “We regularly review our product offering to ensure they are best suiting the needs of our customers and helping people to achieve their homeownership goals.
“We believe that today’s changes will remove an existing barrier to those looking to take their first step, or move up, the property ladder through the support of family members while also increasing our competitiveness within the UK home finance market.”
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