First-time buyers struggling to get on the property ladder are set for a cash boost thanks to new rules from April Mortgages.

The mortgage lender is making it easier for family and friends to help out with deposits by relaxing its rules around “gifting” money.

It means more people will be able to access April’s mortgages which allow you to fix your monthly payments for up to ten years, giving you extra security and peace of mind.

Gifting becomes more important

Getting a mortgage is tough, especially with the cost of everything going through the roof. The price of houses is also making it nearly impossible to save for a deposit. Research from Legal & General found over 314,000 people relied on financial help from family in 2023 just to buy a house, with the average gift topping £25,000.

How will the new rules help?

Previously, anyone remortgaging with April Mortgages and wanting to release some of the equity in their homes for a gift was limited in how much they could borrow. Now, April Mortgages will allow borrowers to borrow up to 4.5 times their annual income – making it possible to give bigger gifts to family and friends.

And first-time buyers can now borrow up to 6 times their salary with an April mortgage.

Good news for borrowers

James Pagan, director of product and portfolio management at April Mortgages, said the company was committed to supporting first-time buyers and helping them get on the property ladder.

He said: “Home ownership has become harder to achieve for would-be buyers in recent years, as it has become more challenging to save the required deposit.

“April Mortgages is passionate about supporting first-time buyers, and by expanding our capital raising criteria we are making it easier for loved ones to gift deposits while also benefiting from the vital peace of mind our products provide.

“Combined with our LTI caps increase for first-time buyers, April Mortgages is helping more borrowers to not only purchase a home but stay in it for the long term.”