The Intermediary – December 2025 - Flipbook - Page 79
B RO K E R B U S I N E S S
Case clinic
75% LTV is available but would be subject to a
satisfactory valuation and underwrite on the case.
The commercial and short lease element will be
taken into account on the valuation when carried
out. As long as the property has marketability
to be re-sold, this would be a case that can fit at
Foundation.
application. Any anomalies or concerns will be
raised accordingly.
HARPENDEN BS
We can accept a gifted deposit from immediate
family, even where these funds have been
raised through further finance. Please note, our
maximum LTV is 85%.
BUCKINGHAMSHIRE BS
The society may be able to consider this
application, subject to our standard
underwriting criteria.
As part of the assessment, we would ensure that
our vulnerability checks are completed to confirm
that the parents fully understand the potential
implications of increasing their own debt.
Alternatively, the society’s ‘Deposit Lite’
offering could be explored. This option does not
involve raising funds from the parents’ property,
but instead places a charge on their property to
support the application.
We would just require consent for our change
to be placed second from the equity release
company, and would be subject to lending criteria
and LTV on the parents’ property.
C AS E S I X
Parental gift via
equity release
first-time buyer is purchasing a £280,000
property with a 10% deposit gifted by their
parents. The parents raised the deposit by
releasing equity from their own mortgaged home.
While the funds are legitimate and traceable,
some lenders have been hesitant due to concerns
about financial vulnerability of the parents,
particularly where equity release is involved.
A
UNITED TRUST BANK
TOGETHER
The source of funds is legitimate and traceable
from UTB’s perspective, and we would expect that
the applicant’s parents have taken the necessary
advice before making a decision to gift the funds
from an equity release loan. Our solicitors will
complete anti-money laundering and source of
funds checks during their conveyancing of the
Together could support this applicant, although
at a maximum 75% loan-to-value, assuming the
property is of standard build.
The gifted deposit from the parents will not
be an issue as long as a gifted deposit form is
provided, though potentially independent legal
advice may be required. ●
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All information correct at 30/11/25. Visit our website for further information and full terms and conditions. Authorised by the Prudential
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November 2025 | The Intermediary
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