Charles Haresnape, managing director of residential mortgages at Aldermore, said: “To date gifted deposits usually involve a builder, vendor or parent making a cash contribution, as well as the applicant also providing a deposit themselves.
“Aldermore will now allow a close relative or step relative to contribute the full deposit, meaning the applicant can use their hard-earned cash for other house-buying expenses.”
The lender will also be extending the offer period allowable on new build properties.
Haresnape said: “We are also mindful that borrowers applying for new build properties can sometime find that their chosen property is not complete before the offer period runs out.
“We have therefore extended the offer period on new build properties from 80 to 180 days and we no longer require evidence of 12 monthly rental payments from applicants.”
