broker advice right?

cleofish

Thanks for your reply, the deposit is actually half my parents and half his, so we were going to arrange for it to go into my account and then me transfer to oh and give 1 gifted letter from me, just for ease.

Will it just be easier, complication wise with our lender to just get mine and oh parents to transfer each of their halves into my oh savings? And both of them give gifted letters? It takes me out of the deposit procedure then?

I didnt realise it would cause so much trouble, certainly dont want it causing problems further down the line.

Dave_Ham

May well come down to your Solicitors interpretation of the lenders criteria.

Gifted letters from your Parents is potentially going to cause an issue, whether going via your or OH.

Is there a specific reason why you could not be on as a joint applicant?

cleofish

Im not going to go on the mortgage because of my current state of credit score etc, me and oh arent financial linked so by getting a mortgage together would mean that I would be the reason it would get declined, which wouldnt be fair, hopefully in the future when things calm down we can look to add me, but for now its just under the oh.

Im not sure about the whole deposit thing, it seems frustrating. I thought the point of sourcing it was to cover money laudering purposes, and I could see by me giving the deposit and living in the house could be complicated, but if in effect I said before hand (by way of a letter ) I wouldnt try and claim any share of the house back, they would be ok with it.
So even if we reverted to getting parents to give it straight to oh instead and giving gifted letters i least thought that would be ok if the bank knew it was gifted and not a loan to pay back.

there isnt any money laudering going on- I wouldnt even know what to do to do it no 'gifts' to pay back or anything under hand from me going on, surely situations like ours must have come up before? The banks must have seen this before?

Simon_gloster

Please read Dave's post, post 21. It may all be roses now, but the solicitor has a duty of care to tell the lender if the deposit is from a 3rd party to the mortgage.

Albeit Halifax may be lenient but by no means are they willing to compromise their money in case of repossession, hence 3rd party deposits. Seek legal advice about yourklenders criteria.

cleofish

Thanks both I appreciate the replies, it just seems a bit frustrating as we cant be the only ones with as you said 3rd party deposits, and we are willing to give whatever letters may be needed by the lender as well, but ultimately will have to see what they say.

MrsPBikerChick

I'm not a mortgage advisor or broker so will bow to the superior knowledge of those who've posted who are. However, this was my experience when I bought my place 2yrs ago:

Mortgage and property both to be in my name with deposit from my parents, hubby (then fianc!) to live there with me. In our case the sole mortgage/registration was partially due to credit records and partially because just my folks were contributing. My mortgage is with ING with an LTV of 75%.

Hubby signed the occupier form giving the lenders interest precedence with no problems. The deposit money was transferred from my mum's account to mine and then to the solicitor at the appropriate time. My solicitor checked where the deposit was coming from and sent mum a form to sign confirming the gift. Again, the lender was quite happy with this. The solicitor did say that lenders are getting more used to deposits being parental gifts where you're a FTB and ING had specifically asked if this was the case with me.

All in all I had no problems with it, but that's not to say Halifax will be the same as ING. You don't say in your posts whether the property itself will be in your OH's sole name or both your names (unless i missed it). I can definitely see Halifax being funny about it being in joint names but with a sole mortgage. What would there be to stop you, if you held the property as tenants in common rather than joint tenants, selling your share of the ownership and them being left with an interest in only part of the property which does not cover the value of the mortgage? Totally hypothetical but I imagine it would be an issue for them.

My suggestion would be to be honest and ask your solicitor what the best course of action is given your individual circumstances and lender.

kingstreet

MrsPBikerChick wrote: »

I'm not a mortgage advisor or broker so will bow to the superior knowledge of those who've posted who are. However, this was my experience when I bought my place 2yrs ago:

Mortgage and property both to be in my name with deposit from my parents, hubby (then fianc!) to live there with me. In our case the sole mortgage/registration was partially due to credit records and partially because just my folks were contributing. My mortgage is with ING with an LTV of 75%.

Hubby signed the occupier form giving the lenders interest precedence with no problems. The deposit money was transferred from my mum's account to mine and then to the solicitor at the appropriate time. My solicitor checked where the deposit was coming from and sent mum a form to sign confirming the gift. Again, the lender was quite happy with this. The solicitor did say that lenders are getting more used to deposits being parental gifts where you're a FTB and ING had specifically asked if this was the case with me.

All in all I had no problems with it, but that's not to say Halifax will be the same as ING. You don't say in your posts whether the property itself will be in your OH's sole name or both your names (unless i missed it). I can definitely see Halifax being funny about it being in joint names but with a sole mortgage. What would there be to stop you, if you held the property as tenants in common rather than joint tenants, selling your share of the ownership and them being left with an interest in only part of the property which does not cover the value of the mortgage? Totally hypothetical but I imagine it would be an issue for them.

My suggestion would be to be honest and ask your solicitor what the best course of action is given your individual circumstances and lender.

It's not the same situation and is significantly worse. In your case it was you and your parents and your partner was a consentor. That's straightforward.

He will purchase the property with a sole mortgage and she and her parents are providing the deposit. They are not married, so the parents can't gift to him and she will be residing in the property, providing some of the deposit bit not party to the mortgage or ownership.

This needs to be squared away before the OP spends money on fees.

cleofish

Thanks for your replies and for giving your experience.

For confirmation-

Yes the mortgage and house will solely be in my partners name.
And I am happy to fill out the residence letter that is needed.

The deposit is half from my partners parents and half from my parents.

We arent married, so am I right in thinking that there shouldnt be a problem from half the deposit coming from my oh parents into the property if its in his name, the problem is just going to be from my side?

What would happen if the half of the deposit that was coming from my parents were transferrred to oh parents and therefore the whole deposit would then come from his own parents accounts into his as 1 sum?
Then the solictor would be able to say full deposit came from oh (mortgage holders) parents and supply the solictor a gifted letter?

GMS

cleofish wrote: »

We arent married, so am I right in thinking that there shouldnt be a problem from half the deposit coming from my oh parents into the property if its in his name, the problem is just going to be from my side?

What would happen if the half of the deposit that was coming from my parents were transferrred to oh parents and therefore the whole deposit would then come from his own parents accounts into his as 1 sum?
Then the solictor would be able to say full deposit came from oh (mortgage holders) parents and supply the solictor a gifted letter?

OH parents gifting to your partner is no issue. What you are proposing for the rest is manipulation at best, fraud at worst.

Why are you considering this if you have told the lender the truth like you say you have?

cleofish

We explained to the lender as I said before hand, but following that a few people have replied with certain things saying that it would cause a lot of trouble and could lead to it falling through at solicitor stage even though lenders would appear to be happy at the beginning and this has worried me.

I was just trying to come up with an easier solution overall that would cause the less hassle and less likely to ruin our chances with our mortage application going through.

There was no intention of fraud at all, I think its best that we stick with our original plan and supply all paperwork, saying its origins and for us to get advice from the appropriate qualified people.

Thanks for the heads up though, least we can be aware the deposit issue might cause problems and we can seek advice before hand.