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Mortgages, incentive?? Help!
Stephanierebecca
Posts: 10 Forumite
I would be EXTREMELY grateful for any advice as I have the surveyor coming out today to value for the mort co!
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Dont worry about mortgage fraud. If you can show its completely innocent then its fine.
This is more down to the solicitor to ensure the paperwork is completed properly to ensure you pay the right amount of stamp duty etc.
Some lenders might get a bit fussy about the process, others wont. Before you make any applications or do any credit checks either speak to the lenders (and ideally get in writing) that theyre happy for the gifted deposit by way of a reduced sale price - this will probably come down to a valuers report (which would be the case anyway), but some lenders will get a bit arsey about it.
Alternatively speak to a broker and get them to do the leg work for you.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I take it the lender does know about the family gifted equity deposit? Many lenders will not accept this and may be expecting a cash gift before completion.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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kingstreet wrote: »I take it the lender does know about the family gifted equity deposit? Many lenders will not accept this and may be expecting a cash gift before completion.
The reason being that some unscrupulous people might artificially inflate the purchase price so that the buyer is in effect getting a 100% mortgage. Whilst a valuation should highlight such a discrepancy, many banks having had their fingers burned in the past now just won't even entertain such proposals.0 -
Won't the lender, on seeing there is a gift from family, insist that they sign a declaration that it is a gift and they retain no interest? If they do sign that, does it prevent them later holding equity?0
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She has signed a letter that the deposit is gifted and no interest is retained to avoid a resulting trust interest being created... and we have a DIP on that basis.0
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I can't see how what she does after completion should make any difference. If the lender is happy to lend on the property as is and is happy with the family gifted deposit then what she does afterwards should be none of their business.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
It all seems very over-complicated for what it is!0
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Stephanierebecca wrote: »It all seems very over-complicated for what it is!
You appear to be over complicating matters. Obtain the mortgage first. That's your biggest hurdle.
The valuation may well be lower than the "sale price". So any mortgage offer will reflect this.0 -
Well I had thought it was fairly straight forward ...0
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