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    • Foxo
    • By Foxo 13th Jun 17, 12:30 AM
    • 8Posts
    • 0Thanks
    Foxo
    Using money from future family as a deposit
    • #1
    • 13th Jun 17, 12:30 AM
    Using money from future family as a deposit 13th Jun 17 at 12:30 AM
    Hi,

    Hoping someone can help me and advise the best way forward here!

    My fiancee and I (getting married in December) are looking at buying a house now, to avoid paying sky high rent for too long, particularly as it is due to increase by 8% in 2 months time, and because there are a spate of properties coming onto the market in our area at lower prices at the moment.

    We're looking at Nationwide for the mortgage. In terms of personal financial circumstances I'm on £34.25k, with a committed bonus of average £3k and overtime of £2k, both of which Nationwide appear to take into account from speaking to other people with Nationwide mortgages. I've been in that job for a year and a half now, although only on that salary since April (presume that's not an issue?). My credit card debt is about £120, which I can easily clear, however I did dip £300 into my overdraft in February - will this be an issue - I'm assuming not as it's more than 3mths ago?

    I am considering making the application myself, because my fiancee has essentially no credit history, is self employed, however is making no profit - essentially breaking even every month at the moment. Would we have to prove that she is breaking even?

    The deposit would be coming from my savings (£2.5k), her savings (£8.5k) and a gift from her dad (£6k). Would a lender take a dim view of a gift coming from a future father in law, and a fiancee not on an application?

    Would including her on the application hit my application sufficiently that I wouldn't get the necessary amount? Or would I need to include her to cover where the deposit is coming from to avoid questions and make it acceptable? As a guide we're looking at just under 90% LTV, so about a 148k mortgage required.

    Appreciate the help!
Page 1
    • Foxo
    • By Foxo 13th Jun 17, 12:20 PM
    • 8 Posts
    • 0 Thanks
    Foxo
    • #2
    • 13th Jun 17, 12:20 PM
    • #2
    • 13th Jun 17, 12:20 PM
    Anyone able to give any thoughts? Keen to proceed as quick as we can as we've found some houses we want to have a look at and one we probably want to make a move on
    • Pixie5740
    • By Pixie5740 13th Jun 17, 12:23 PM
    • 11,107 Posts
    • 15,392 Thanks
    Pixie5740
    • #3
    • 13th Jun 17, 12:23 PM
    • #3
    • 13th Jun 17, 12:23 PM
    Here's a crazy thought.....ask Nationwide or use their online mortgage calculator.

    Being self-employed is not a barrier to getting a mortgage and nor does having zero income preclude you from being party to a joint mortgage. It's not the gifted deposit from the future in-laws that will be the major PITA it will be accepting a gifted deposit from someone living in the property but not on the mortgage.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Foxo
    • By Foxo 13th Jun 17, 12:54 PM
    • 8 Posts
    • 0 Thanks
    Foxo
    • #4
    • 13th Jun 17, 12:54 PM
    • #4
    • 13th Jun 17, 12:54 PM
    Have used the calculator and it says we would be able to get the necessary mortgage with her on the mortgage, however it obviously isn't taking into account that she has no credit history, so I'm uncertain how that would affect it. I'm totally happy for her to be on the mortgage just unsure of the effect of doing so and whether it's going to have a significant impact. I guess the only real way I'm going to find out is to speak to a broker or Nationwide directly?
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