FTB requiring advice on deposit?

NervousHomeowner

Hi all, just looking for a bit of advice and hoping someone can tell me what to do!

My partner and I are FTBs. We have an AIP through a mortgage broker and have been agreed a mortgage of £90,000 with a deposit of £40,000. £20,000 of the deposit is mine/ours and £20,000 is from my mum. So far things are going smoothly & we are now looking at properties but having read the forums, I am anticipating a problem may possibly arise in the short future..

Basically, our share of the deposit (£20,000) is money I was awarded as a child when my dad died in a car accident. It was held in trust through the courts until I was 18, at which point it was given to me and I swiftly handed it over to my mum for safe keeping (Because who knows how to take care of £20,000 at 18?) and there it has stayed until now, just because I wasn't using it so I saw no point in moving it. The money is all traceable back to the court trust that it came from and I have court documents to prove that the money is mine.

However, I've read that as the money is held in my mum's name, and not mine, it will appear that it is being gifted to me and my partner (And therefore it will appear our entire deposit is being gifted to us) and this could cause a problem if the lenders decide that this proves we aren't able to save or the deposit is unstable or whatever.

So, I then thought maybe I should transfer it to my bank BUT I've heard that doing this might put us in an even worse position because then it could possibly look like we're trying to launder money.

So, basically, what is the best thing for us to do now? Our mortgage broker is calling me tomorrow so I'll talk to him about it then but I thought I'd get some advice from other sources.

pinkshoes

It's YOUR £20k, you have the paper work to say so, so just transfer it to your bank. Your mum can sign a letter if needs be detailing this.

So £20k is your money, and £20k from your mum. Is your other half not contributing? Are you married?

NervousHomeowner

pinkshoes wrote: »

It's YOUR £20k, you have the paper work to say so, so just transfer it to your bank. Your mum can sign a letter if needs be detailing this.

So £20k is your money, and £20k from your mum. Is your other half not contributing? Are you married?

Thanks for the advice! So because we can trace it, we should be okay and it won't look like money laundering? Would the letter be best if it was notarised or something by a solicitor?

My partner and I aren't married and don't have plans to tie the knot in the near future, no He won't be contributing to the deposit but will be contributing more each month for the mortgage payments as I have decided to go back to uni full time (Don't worry, our AIP has taken this into account) so I have no qualms about putting forward the deposit (It will be protected by a signed agreement anyway).

andy.m_2

Make sure you plan for the worst, have a written account of who paid what and what the arrangements will be should the dream not pan out.

As negative as that sounds, there are literally hundreds of posts asking what happens now we've split up and unless there is a sort of pre nup it can get messy.

Do you want the deposit paid back and then any equity or otherwise dealt with? or do you want the equity just split?

Plan for the worst then anything else is better

NervousHomeowner

andy.m wrote: »

Make sure you plan for the worst, have a written account of who paid what and what the arrangements will be should the dream not pan out.

As negative as that sounds, there are literally hundreds of posts asking what happens now we've split up and unless there is a sort of pre nup it can get messy.

Do you want the deposit paid back and then any equity or otherwise dealt with? or do you want the equity just split?

Plan for the worst then anything else is better

Don't worry, we have already talked this through & planned what we will do if the worst happens. We also intend to get it all written up, signed, dated, witnessed etc. so there is no confusion over what will happen if we split and no one can change their minds at a later date. Honestly, I wouldn't be buying a house with him if we hadn't already discussed this at length