Buying at reduced price/gifted deposit

Raggs_2

Not sure if here or mortgages board is most appropriate, but lets start here.

There is a possibility that in the future I will be able to purchase my mum's old house (she will be living elsewhere, and will have been renting the place out). She will have a mortgage on the new place that will need clearing, and so will require around 150k. Now, assuming house prices don't fall too far in the next 4-6 years, and the house still be worth more than 150k, is it possible for her to gift me the difference as a deposit?

I.e. House worth 170k, I pay her 150k, the 20k difference is taken to be a deposit by the mortgage company.

I will have further savings to boost that deposit (anything upto another 30k). There's no massive depreciation of assets going on since she will still own half a better house, and will only have given away around 20k. I realise that IHT may apply if she were to pass away after 7 years (though I don't think she'd reach the limit).

Basically, will the mortgage company accept the difference as a gifted deposit?

brit1234

Your have to declare what you are planning to do with the bank or you will be committing fraud. They will most likely say no. Gift deposit fiddles have been clamped down now which is a good thing.

Raggs_2

Of course it will be declared.

How exactly is it a fiddle? Would it be less of a fiddle if my mum gave me 20k, that I then returned to her in the form of buying a house from her? It will be a true gift (I thought that was clear) not a loan, and I will have my own deposit to reassure the mortgage co, that I am capable of saving also.