01 / 14 · Practice · Gifts
Buying from family, below market, without inventing a loan.
Gatehouse removed extra deposit rules for discounted family purchase on an HPP. English undervalue, Islamic hibah, and a bank that still wants a share: three systems in one TR1.
The Mizan desk · 7 September 2026 · 7 min
Mortgage Strategy, 2 June 2026: Gatehouse updated criteria so HPP customers buying at undervalue from a family member no longer faced extra deposit requirements. A parent selling a house to a child for less than market is common. A bank buying a share of that undervalue is not a standard case.
Name the gift
The discount is a gift (hibah) of equity. It should be documented as such, not as a side loan from father to son that the HPP then sits on. Side loans recreate riba if they grow, and they confuse beneficial ownership if they don’t. SDLT on connected-party transfers has its own rules. Do not DIY this with a template from a Facebook group.