Proof of deposit

Joeysmum_2

Can someone offer advice please? I have applied for a mortgage in my name as my husband is self employed and they will not take his income into account. The deposit is made up of savings and a personal loan in my husbands name, not mine. However I do not want to disclose this info to my mortgage lender and so my husband has transferred the money into my personal account and has drafted a letter saying its a gift. I need to know if this is acceptable? I know gifts can be made from parents etc but not sure about spouses?

holly_hobby

Lenders don't like a resident of the property (whom isn not party to the mortgage) gifting deposit capital, as this is seen by them as a "gift with consideration, which of course it is (i.e - his donation is effectively in exchange for his occupancy in the dwelling) - so going down that track will cause issues (they largely also don't really like a deposit being funded by a loan - albeit only partially in this case).

I would ordinarilly say effect a joint mortgage, with you as primary (first) applicant and main earner, and he as secondry applicant - that would deal with the deposit issue and your income would be the main multiple, unless his loan and other credit commitments (that will also be taken into account, even if his income isn't) will cause affordability issues ?

If that is an issue, then I may just state the deposit is from familly funds (which is technically true, and as a married couple the transferring of capital between each others accounts, would be seen as perfectly usual). The mge application will also ask for confirmation and a signed consent to vacate disclaimer, from your Hubby (which is perfectly normal where there are individuals aged 17 yrs or over, whom will be resident post completion but are not party to the mge).

h

Hope this helps

Holly

Joeysmum_2

No affordability issues at all I was just advised by The Halifax not to include my husband on the application as I earn enough to cover it and he us self employed. We are too far down the line to change things I think but will the Halifax object to the fact that some of the deposit has come from a loan even if its in my husbands name not mine?

holly_hobby

If declared its from a loan possibly, although if he isn't party to the mge they shouldn't be conducting a credit search on him, further more if its only in his name, then legally the liability is also his alone. (gone are the days when a spouse could be purused for the others commitments).

What did you declare on the app as the source of the deposit ?

Holly

Joeysmum_2

I didn't declare it was a loan as it was in my name for the mge I didn't see it as relevant. The money has come directly from my husbands personal account so surely they wouldn't have any right to see evidence of where it has come from?
Thank you for your help.

holly_hobby

Money laundering regs say they do.

Thrugelmir

Joeysmum wrote: »

The money has come directly from my husbands personal account so surely they wouldn't have any right to see evidence of where it has come from?

Your solicitor who will represent the lender in the transaction as well. Is required to veirfy the source of the deposit. This information will be passed back to the lender.

Thrugelmir

Joeysmum wrote: »

I have applied for a mortgage in my name as my husband is self employed and they will not take his income into account.

If your income alone is sufficent. Then this shouldn't be issue. In fact the opposite. As your husband provides additional surety for the debt.

Your behaviour may well concern your prospective lender. As you feel it is acceptable to try and hide material facts from them.

_Andy_

Presumably the OP will be back in 1-2 years saying the mortgage was mis-sold.