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Specialist concessionary purchase mortgage advisors.

Got gifted equity? Complete your concessionary purchase with specialist mortgage guidance from our team of expert brokers & advisors.

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Supporting your concessionary purchase journey. 

If someone has decided to sell a property to you at below market value, you will no doubt be feeling excited about the future. Our concessionary purchase mortgage advisors share in your excitement, and can’t wait to get started helping you achieve the finance you need to secure the property at a discounted price.

We’ve helped many clients navigate concessionary purchases, and are committed to taking the stress and strain out of the application process. Even if your credit is imperfect and your deposit is limited, we’re here to take the fear out of mortgages and help you succeed with securing that below-market value purchase.

 
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What is a concessionary mortgage?

A concessionary mortgage is a mortgage that is used to purchase a property at below-market value. It is often used when you are purchasing from a friend or family member and would struggle to afford the property at its true market value.

The equity is essentially gifted to you by the seller. Concessionary mortgages can therefore be a useful way for first-time buyers or those on low incomes to achieve a home of their own and get on the property ladder.

Concessionary purchases can also come about if a landlord decides to offer their tenant the option of buying at a discounted price. If you think a concessionary mortgage might suit your situation, talk to a member of our friendly team and we’ll explain the options available!

Concessionary mortgages are different to mortgages that involve gifted deposits, whereby a person gifts funds to a buyer so they can buy a property for its actual value as opposed to getting it at a discounted price.

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Finding The Best Concessionary Purchase Mortgage Deal For Your Circumstances

Gifted equity is a wonderful thing, helping first-time buyers, tenants and employees afford and achieve a home of their own. If you’re taking part in a concessionary purchase, there are some considerations.

Our expert mortgage advisors have years of experience assisting people in all sorts of circumstances to find the finance they need to complete their concessionary purchase. Even if you have bad credit or no deposit to speak of, we can help you locate lenders more amenable to your situation.

We’re on a mission to prove that there’s a yes out there for every buyer. If you’re ready to start your mortgage journey, we’re ready to get to work!

How does a concessionary purchase mortgage work?

Concessionary purchase mortgages work in a similar way to a standard residential mortgage. Many lenders will consider the deposit to be the equity provided by the discount and will base their loan-to-value calculations on the market value to offer you a mortgage that’s 100% of the price you are paying for the property.

There may be exceptions to this where you might have to put up additional funds to secure the mortgage. This often occurs in circumstances where the purchase isn’t via the assistance of a family member.

Turning Your Nightmares Into Dreams

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When you think you’ve hit that brick wall and have all but given up hope of finding mortgage finance, When the Bank Says No are here to turn your ‘No’ into a ‘Yes’. We have access to a range of specialist lenders who are willing to help those that the High Street banks just won’t touch. Get in touch today and see how we can turn your dreams into a reality.

Are there different types of concessionary purchases?

Concessionary purchases can be made between anyone, but it is most common between family members. Other sellers who might offer to sell you their property at a reduced rate include landlords, developers offering discounts, and even employers. So why would a landlord offer a discounted price? It may be that they are looking to sell the property but want to avoid the inconvenience of selling on the open market, so are therefore willing to offer you the property at a purchase price below the market value. This sort of offer is more likely if you’ve been a long-term tenant, and will usually only apply to those who have been tenants for at least 12 months.

If you are being offered a gift of equity through one of the concessionary purchase options, our experienced mortgage advisors can help you decide how to proceed. A large gift of equity can significantly reduce the deposit you need to raise (or even remove the need for one), and this can open up a wider variety of mortgage options. Based on the type of concessionary purchase you are making, we can identify the best next steps to take.

Is there anything that will impact my eligibility for a concessionary mortgage?

The factors impacting your eligibility for a concessionary mortgage will be the same as for any other. Property type will be an important consideration for mortgage lenders, as will deposit size, credit history and income.

With many lenders having strict eligibility criteria, failing to make sure you fulfil them before applying can lead to a disappointing concessionary purchase mortgage refusal. If you have some adverse credit history or anything at all you are feeling concerned about, our specialist concessionary mortgage advisors can help you determine which lenders to apply to, safeguarding your chances the first time around. We don’t care about the monsters in your closet – we care about helping you secure your new home! Get in touch today.

Frequently Asked Questions

How much deposit would I need for a concessionary purchase mortgage?

The amount of deposit required will depend on the property value and the lender’s policies. Some lenders may look at the amount discounted from the property’s true value and decide to consider this the deposit. As a result, you might not need to have a deposit at all.

Other lenders will still require a traditional deposit based on the discounted value of the property, likely in the region of 5-10%, though this will depend on your own personal circumstances. However you would like to proceed, and whatever your financial situation, we can help you navigate your concessionary purchase and locate the right mortgage lender for you.

Whilst a concessionary purchase mortgage can be helpful in certain circumstances, there are some limitations to keep in mind. For instance, the discount cannot be a private loan and must be considered as a gift – that means the seller cannot own a share of the property and no conditions should be attached to the transaction.

Another limitation to bear in mind is that many lenders will be wary of situations where the previous owner still intends to live in the property as this can cause issues with rights of ownership. This can cause issues if parents want to remain at a property once it has been sold to a family member. Some lenders may allow parents to remain in a property, but only if they sign a waiver of rights.

Considering the added nuances of the mortgage process with concessionary purchase, it’s important to enlist the help of an expert team of mortgage advisors as soon as possible. We’ll help you understand the best way to proceed according to your circumstances, and seek out the lender most suited to your future plans.

Concessionary purchases can come with additional tax implications and that is why it is important to seek professional advice before entering into one. Stamp duty land tax, capital gains tax (CGT) and inheritance tax can all come into consideration depending on the circumstances of the sale.

If the property is above the threshold that means you have to pay stamp duty, this will be based on the actual sale price rather than the market value, so you could save money in this respect. If the seller is a family member then you may be concerned about the capital gains tax implications for them. CGT is payable, based on the market value rather than the purchase price, but is payable only in the circumstances that it is the seller’s secondary property.

If you are buying the property from your parents or another family member, there could also be inheritance tax implications, but only if they pass away within 7 years of the sale.

Of course, bad credit is never ideal, but there will still be options open to you. You may find that adverse credit has an impact on the number of concessionary mortgage deals you are eligible for.

However, bad credit can be subjective, and many lenders will be more open to looking past it – particularly if you can put down a large deposit. If you need some help locating a mortgage product that is suitable for your specific financial background, you can trust our friendly team. Talk to a mortgage broker today and we can begin the search!

Specialist guidance for concessionary mortgages.

Concessionary purchase is a great way for family members to help first-time buyers get on the property ladder by buying at below-market value. Developers, landlords and employers may also choose to offer their properties to the market at a discounted purchase price.

If you are taking part in a concessionary purchase, our expert mortgage brokers are here to help things run smoothly. We’ll help you find a lender using our in-depth knowledge of the market and ensure your application is in its best possible shape.

With our guidance, market insights, and useful tools and information, you can feel confident that you’re putting your best foot forwards and getting that concessionary house purchase. Bring on move-in day!

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