Deposit Gifted by Spouse

ging3r

Hi,
I am buying a property in my name only and I am the first time buyer.

1- Can my spouse take a loan out and gift it to me as a deposit ?

2- My mother who lives in India, can she give me money for the deposit ? in this case It would be in the form of hard cash and I will deposit it in the bank when arrives.

I am worried/confused what is the best option ?

My lender is Halifax.

Thanks

casper_g

It is perfectly possible for a relative to give you a gift of money to use as a deposit.

The mortgage lender will ask where the money came from, and you need to tell them in an honest and straightforward fashion that it is a gift. The lender may be a little more cautious about lending to you than if you'd demonstrated your financial soundness by saving the deposit from your own income, but if the numbers stack up and you have a decent credit history you will still find lenders willing to accept you. I suspect Halifax will not have a big problem with this (after all they are one of the only banks willing to lend with a deposit of 5% gifted by the vendor, so a gift from a relative should be OK).

The bank may ask for a document signed by whoever gives you the deposit saying that they are giving the money outright and do not expect to have any financial interest in the house you are buying.

mildred1978

ging3r wrote: »

Hi,
I am buying a property in my name only and I am the first time buyer.

1- Can my spouse take a loan out and gift it to me as a deposit ?

2- My mother who lives in India, can she give me money for the deposit ? in this case It would be in the form of hard cash and I will deposit it in the bank when arrives.

I am worried/confused what is the best option ?

My lender is Halifax.

Thanks

Won't your spouse be living with you? If so, I believe the application must be done in both names.

poppysarah

Why have you not saved a deposit?