I managed to buy my first house 2 and a half years ago (when the recession was first hitting hard I guess). Sold a car I had for 6K and got an old banger in PX. That was my deposit for a house sold to me at 94K - LTV of 95% resulted in an extortionate interest rate (7.14%) When I made the decision to buy it took me less than 6weeks to decide on the house, sell the car, sort the mortgage and move in!
I don’t really know much about the gifted deposit you mention, but the lender will always send a surveyor out to value the property so you are in their hands really (just remortgaged myself so I know!)
The best advice I can give - obviously save as much as you can as the rates and deals will open up a hell of a lot more.
Any fees you have to pay associated with surveying, arrangement fees, solicitors and even moving property if renting - take out a credit card with an interest free period - there are lots out there at the moment with 15 months interest free so you just pay the minimum each month and extra when you can. Just make sure you can pay it off before the offer ends. If you bolt these prices onto the mortgage it will count against you LTV ratio (loan to value)
Don’t fall in love with the house you are looking to buy - you will get a much better deal if you don’t as you won’t get clouded vision and offer more than you could potentially buy it for (it is a real buyers market out there and will be for the foreseeable future) Buy somewhere that needs a bit of tidying up and TLC and you will make your money back. I know as like I said I brought mine for 94K 30 months back and just had it revalued by a new lender and estate agent and the prices came back at 120K and 130K respectively which now means my LTV is at worst 76% and at best 70% which has allowed me to remortgage on a rate of 3.39% (a BIG difference). Initial hardship is worth it if you can put up with it and ride it out.
Also, something everybody misses and doesn’t think about at the moment with ISA rates being so crap and low atm - put your mortgage savings into bonds - I would put money on anyone making more money from bonds than ISAs atm. You can access all the money in bonds just as quick as you can from an ISA!
Cheers.
