New mortgage rules aim to make family support easier
Principality Building Society has expanded the range of family members who can contribute gifted deposits and equity towards mortgage applications. The change is aimed at broadening access to home ownership for first-time buyers by recognising financial support from a wider circle of family, including stepfamily members.
The decision comes amid a growing trend of first-time buyers relying on financial assistance from relatives to secure a home. UK Government data for 2023-24 has indicated that 31% of first-time buyers received support from family or friends to fund their deposit. Despite this, personal savings remain the primary source of funding for most buyers.
By extending its definition of family for gifted deposits, Principality aligns its mortgage criteria with its underwriting approach, which assesses applications on a case-by-case basis, the news release noted. This change follows recent initiatives such as family boost schemes and an increase in loan-to-income (LTI) ratios to 5.5 times income.
Principality, founded in 1860, is Wales’s largest building society and the sixth-largest in the UK, with assets of £12.5 billion.
“Following consultation with brokers, we have updated this piece of criteria to extend the support available to buyers looking to secure their new home,” said Helen Lewis, national intermediary manager at Principality Building Society. “This is the first change ahead of a busy 2025 for us as we look to continue to support brokers and their clients.”
The mutual organisation operates 53 branches and 14 agencies across Wales and the borders. It offers Principality for Intermediaries, a platform designed to support UK mortgage brokers with tailored tools, guides, and competitive loan products.
To learn more about this platform, explore its mortgage offerings, eligibility criteria, and key benefits for intermediaries with this guide.
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