Info needed by lender if someone else pays my deposit?

saharasarahs

Hey i am applying for a mortgage but someone else is payinng my deposit (25%) for me and i was wondering what info the lender will need to know about them, they are non UK resident, many thanks.

Senior_Paper_Monitor

Source of funds definitely - i.e who the are and quite possibly proof of how they got the money (full ID check possible).

Not all lenders accept gifted deposits and almost all limit such gifting to close family - and may want documents confirming it is a 'pure gift'.

Some lenders will want to see proof of you saving at least some of the deposit even if they accept gifted.

Choose the lender carefully and get pre-approval for what you are doing (or let a broker do it for you), this one could easily go wrong even at a late stage.

kingstreet

Have you already applied? Did you make them aware of this at the outset?

I'd mention it to your solicitor too, if you haven't already.

saharasarahs

Thanks for the replies, i have a decent amount saved in an ISA that i can show them and how will they require the person paying the deposit to Prove their identity and source of income if they are not in the UK?

Senior_Paper_Monitor

Who and what relationship is 'the person' ?

saharasarahs

Actually he is my boyfriend but i thought i might say he is a relative.

GMS

Giving false information is the last thing you want to do.

Which country is he in?

Declare the gift to the lender and see what they say. The solicitor will need to check the source of deposit anyway so no point in lying about it

saharasarahs

He lives in Dubai and i thought the general consensus was that only gifts from close family are acceptable and im not really sure how they would know if he was my boyfriend or uncle or stepdad. I obviously dont want to tell lies but on the other hand in these times they make it so hard for people trying to get a mortgage that i just want to give myself the best possible chance. Thanks for all advice.

Senior_Paper_Monitor

A bit of light reading to help you understand .....

http://www.hmrc.gov.uk/mlr/

..... not declaring (or misrepresenting) is likely to lose you the mortage (and possibly any future one!) as well as bringing more grief on your head than you can possibly imagine - I can't add any more advice than that in my first post on the thread as to how you should approach this.

herbiesjp

You have to be totally upfront about any application, and every detail has to be as accurate as possible - to the extent that if circumstances change you would need to notify the lender.

Put the ball back in their court and tell them.

If they say yes it is ok then great. If not, move on and find a lender that will help.

The solicitor will also enquire as to the source of funds as well usually, and they do not want to get into any trouble over misrepresenting the source of a deposit.

saharasarahs

ok good advice thanks.