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It’s becoming increasingly common for adult children to buy their home from their parents or other family members, and by arranging a concessionary purchase, they are likely to save thousands of pounds whilst taking their first step onto the property ladder.
Landlords can also choose to sell their property to long-term tenants for less than market value, to avoid the stress and hassle of putting the house or flat on the open market, when they're ready to cash in on their investment.
Lender criteria for family member mortgages or concessionary purchases will usually be similar to standard mortgages, with the mortgage terms and interest rates dependent on your income, credit history and personal circumstances. In order to qualify for a concessionary purchase mortgage, you will also need to obtain confirmation from the seller that the discount they’re providing is a gift and not a loan.
Many mortgage companies are willing to offer mortgages to those who are buying a property for less than market value. But, there are still some lenders who purposefully avoid this kind of arrangement. At CLS Money, we can help you find a lender who will take the discounted purchase price into consideration and underwrite your agreement accordingly. Our brokers will help you find the right deal, then manage the entire application process from start to finish, leaving you to look forward to receiving the keys to your brand new home!
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