Gift deposit help

TheHurdler

Just looking for a bit of advice.

This is the situation so far; I am a first time buyer
House is up for sale for £45k (Repo)
Annual Income £14,800
Debt of around £2000 on two credit cards and a loan for a sofa
Were hoping to get a mortgage for 95% with a gifted deposit from partners Grandparents - Here is the issue.

Leeds had originally gave us the DIP based on all of the above and confirmed the gifted deposit would be fine despite not being from my blood relative.

One week later and (Luckily) a gazumped offer on another house and they call back to say they had made a mistake and actually I can't use the gifted deposit as it is not from my blood relative.
Unfortunately my partner has a poor credit history therefore the mortgage can only be in my name.

Any suggestions of how we can get around this? I don't have contact with my blood relatives anymore so a deposit from them is out of the question.


We're both so frustrated and annoyed with the whole situation & struggling to see a light at the end of the tunnel

Any advice appreciated! Thanks

kingstreet

Suggestion? No. There are very few 95% products available.

In addition, lenders don't like gifts from non-relatives and hate them where the recipient is actually gifting it on to you and will be living in the property and not party to the mortgage/ownership.

Stick all that on top of a 95% application and I reckon it's curtains, I'm afraid.

wannahouse

as far as i was aware, if it sits in YOUR account for over 90 days it is "seasoned" so then won't even need to be considered as a gift, but instead as your money..!

secondly, we are getting a mortgage thru lloyds tsb, solely in my husbands name , as i am currently on maternity leave, but the house will be in joint names..both of our parents are giving us a sum of mney each to go towards the deposit and lloyds were happy with this, even though i am not named on the mortgage!

kingstreet

You should check. I do not know of a lender which will allow more owners on the title, than are named on the mortgage.

Make sure they were not simply referring to you providing consent to the mortgage, which is required for any over-17 who will reside in the property but who won't be a party to the mortgage or ownership.

Being on maternity leave should not be a bar to you being party to the mortgage and the ownership. There are lenders who will take your pre-maternity pay into account if you are going back to work.

LTSB products aren't great, either.

Yorkie1

wannahouse wrote: »

as far as i was aware, if it sits in YOUR account for over 90 days it is "seasoned" so then won't even need to be considered as a gift, but instead as your money..!

What is your source for this statement?

Lenders want to know whether the borrower has had the financial ability and/or discipline to save up a deposit for themselves. Simply keeping it in your account for 90 days does not conceal the fact that you haven't had the ability and/or discipline to save the deposit.

This 90-day rule has never been mentioned on here by brokers and so I suspect that it is simply an 'urban myth'.

Thrugelmir

wannahouse wrote: »

as far as i was aware, if it sits in YOUR account for over 90 days it is "seasoned" so then won't even need to be considered as a gift, but instead as your money..!

The law has no limit as to the reclaim of the money by a third party creditor.

The issue extends outside of the gift to other matters as well.

kingstreet

Yorkie1 wrote: »

What is your source for this statement?

Lenders want to know whether the borrower has had the financial ability and/or discipline to save up a deposit for themselves. Simply keeping it in your account for 90 days does not conceal the fact that you haven't had the ability and/or discipline to save the deposit.

This 90-day rule has never been mentioned on here by brokers and so I suspect that it is simply an 'urban myth'.

I suspect this has been predicated on lenders asking for bank statements going back only three months, so certain assumptions have been made that if it's there for longer than three months, its arrival won't be visible.

If the build-up of the deposit is required, or six months bank statements are requested, as they often are, I guess the gifted deposit issue would then be re-visited, at a time when the applicant has called it savings on the application.

Thrugelmir

kingstreet wrote: »

I suspect this has been predicated on lenders asking for bank statements going back only three months, so certain assumptions have been made that if it's there for longer than three months, its arrival won't be visible.

If the build-up of the deposit is required, or six months bank statements are requested, as they often are, I guess the gifted deposit issue would then be re-visited, at a time when the applicant has called it savings on the application.

The solicitor handling the transaction will ask the source of the deposit. This will be noted and be viewed as a declaration. Should there be issues at a later date.