First-time buyers should stay savvy about property myths. Lisa Mannion, Senior Associate in our Residential Property team demystifies some misconceptions.
2025 looks like a good year for first-time buyers. Mortgage rates are falling, the property market is tradeable, and we expect good volumes of properties for sale. This is happy news for anyone keen to get on the property ladder, but you should not let three common misconceptions derail your plans.
Myth one: gifted deposits
Many buyers rely on generous relatives for home-buying help, but fear this will deter lenders. While most lenders do have criteria on this point, it should not be a deal-breaker.
Typically, the family member must confirm that the gift is not repayable, and they will not have any legal interest in the property. Your solicitor will also be required to verify the source of the gift.
Myth two: mortgage value
Many buyers do not realise that lenders will only lend on the value of the property, rather than what you offer for it. Any amount in excess of that value will not form part of the mortgage and must be funded from your own savings or a gift.
Myth three: missives
When a seller accepts your offer on a property, you will receive a ‘qualified acceptance’, but this is not legally binding.
Only when your and the seller’s solicitors have ‘concluded the missives’ (the letters they exchange about the sale conditions) will you have a binding contract. This usually happens once any mortgage offer has been issued, and evidence of funding has been provided.
A solicitor can provide more information on any of these issues.
