Principality Building Society has extended its criteria covering gifted deposits to first-time buyers, to include all members of the family and stepfamily.  

The lender says: “This decision has been made, not only to respond to changes in the market which has seen an increase in the number of mortgage deposits funded in part by family and friends, but also, to align its mortgage criteria with underwriting decisions made on a case-by-case basis.” 

Almost one-third, or 31%, of FTBs received family help to raise their deposits last year, according to the government’s latest English Housing Survey data. 

Principality Building Society national intermediary manager Helen Lewis adds: “Following consultation with brokers, we have updated this piece of criteria to extend the support available to buyers looking to secure their new home.  

“This is the first change ahead of a busy 2025 for us as we look to continue to support brokers and their clients”. 

The lender says the move follows its introduction of criteria enhancements for FTBs, including family boosts and the introduction of 5.5 times loan-to-income borrowing.