Principality Building Society has updated its criteria for gifted deposits and equity to allow more family members to be eligible.
The mutual has broadened its definition to include all family and stepfamily members.
Principality Building Society said the decision was made in response to changes in the market, indicating a rise in mortgage deposits partially funded by family and friends.
The government’s English Housing Survey showed that in 2023-24, 31% of first-time buyers received help from their families to buy their first home.
It also based this change on a decision to align mortgage criteria with underwriting decisions made on a case-by-case basis.
This criteria change comes after the mutual introduced a five-and-a-half times loan-to-income (LTI) limit for first-time buyers.
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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.”
