Concessionary Purchase Mortgage is a Convenient Way of Buying a Gifted Equity

You are lucky if you are being offered a concessionary purchase or gifted equity. Concessionary purchase is an excellent way to get a property without paying years of installment for a mortgage deposit. A concessionary mortgage is used to buy a property that is sold at a reduced price. It is often referred to as gifted equity or below the market value BMV.


There can be various reasons for selling a property less than the market value –

  • Family members offering a discount because the property is being transferred to another trusted family member.
  • An existing and trustworthy relationship between a vendor and purchaser can lead to a discounted deal.


The process of transferring a deed of gift is often difficult. Seeking the right advice is important when making a concessionary purchase because various terms and conditions have to be met by the lender and buyer for a smooth process. For example, lenders may not permit the seller of the property to reside in it or there may be taxation issues. So, it is wise to take help during concessionary purchases.


If you’re getting a mortgage for a concessionary purchase in the UK, seek advice from Mortgage Experts Online. It is an online platform where you can find mortgage brokers in the UK who can assist you in obtaining a mortgage in different financial scenarios. The entire brokers’ list available on their online site has come across various scenarios which makes them extremely experienced in their field. You can also follow them on Twitter.

Process of Concessionary Purchase Mortgage


Mortgages taken from financial institutions for the properties which are being sold BMV are referred to as concessionary mortgages or BMV mortgages. The process of getting a mortgage for concessionary purchase is similar to a standard mortgage application. It is just that the lender may scrutinize the property market value even more.

The lender will also like to know why you are buying a property at a discounted rate. 


  • Search for a mortgage lender or hire a mortgage broker who can get a lender available for you and can also complete all mortgage applications on your behalf.
  • Provide appropriate documents, details of your occupation, eligibility, salary, financial commitments, deposits as well as your credit history to get a loan approved from the mortgage company.
  • The lender will first evaluate the property and will find the reason why you are buying a property below the market value. Thus, if you are unsure about the market value of the property you are planning to buy, make sure that you research well before applying for a mortgage.
  • Once the mortgage value is decided based on all relevant documents and property value you will now have to pay fees to your solicitor and ask them to prepare a necessary contract
  • Sign all the contracts with the lender and the vendor to complete the deal.


Read also: How to Select the Right Pliers Pair for Your Job?

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There are various benefits of the concessionary purchase. However, each case is different so it is suggested to seek advice from a financial advisor before making any decision.

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Vivek Baghel is a Professional Blogger, Writer and likes to write on various niches as well as all about the latest news. He’s also Admin of a tech blog and shares Tech, News, SEO articles, and the Latest News.
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