Buying a Family Home With 0% Deposit: How We Helped A Client Purchase His Grandfather’s Property.
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The latest industry news and guides from Active Mortgages.
Our client came to us with a deeply personal goal, to buy his late grandfather’s home. A place full of memories and sentimental value. He was purchasing the property from his mother for £350,000 but had no deposit available. Thankfully, his mother was gifting him £100,000 of equity from the property, meaning he only needed a mortgage of £250,000 to make it happen. This was his first property purchase, and while he wasn’t a typical first-time buyer purchasing on the open market, he still needed guidance through the full process – from understanding gifted equity to securing the right mortgage product.
This case came with a few unique challenges:
⚠ 0% deposit – The entire equity contribution was being gifted, which some lenders treat differently than cash deposits.
⚠ Family transaction – Buying from a parent or relative can require additional paperwork and explanations.
⚠ First-time buyer nerves – As someone who hadn’t navigated the mortgage market before our client needed expert guidance at every stage to feel confident and secure.
We also had to ensure the lender was happy with the gifted equity structure and that all necessary declarations were made correctly to avoid delays.
We sourced a 2-year fixed-rate mortgage at 4.03%, running until 2027, with monthly payments of £1,224.09. The product also came with a free valuation, reducing upfront costs – a great benefit for a first-time buyer without spare cash.
We helped by …
✔ Structuring the gifted equity documentation correctly and liaise with his solicitor to ensure everything aligned with lender requirements.
✔ Present the case clearly to the lender, showing affordability and the legitimate nature of the family sale.
✔ Navigate the full mortgage process with confidence, including all forms, valuations, and communications with his mother and legal team.
We successfully placed the mortgage at £250,000 with a mainstream lender offering competitive terms. The fixed rate gave our client the stability of predictable payments for the next two years, and the gifted equity was accepted in full – meaning he secured the home without needing a cash deposit.
Our client was over the moon. Not only did he secure the property he grew up visiting, but he also avoided additional fees thanks to the free valuation and support throughout. The peace of mind of locking in a rate during a volatile market was a huge win.
Our client described the experience as “seamless, reassuring, and honestly a relief.” He mentioned that he didn’t think this would be possible. He praised the team’s communication and the clear guidance provided at every stage. He’s already recommended us to a friend also buying a family home.
Book a call with one of our team to talk about your requirements.
