Mortgage and offer advice please (1st time buyer)

Annisele

Do Halifax and Nationwide know the deposit is a loan, not a gift? If not, that might scupper your plans.

ethank

Have you told the lender that your dad is loaning you money. They are only likely to proceed if it is a gift (and therefore not repayable) or a protected family gift (money given under a trust deed, repayable upon sale of the property) - I am assuming Dad wants his money back?

Shame about your dad. Unless you can convince the seller to sell you the property for less than they want, then you may not be able to afford to buy this house.

You can talk to some brokers, but have run your numbers and the top end was 119k/120k.

ValHaller

Enchilada wrote: »

Well this is where it gets a bit complicated. My father who lives abroad has offered to loan me the deposit. But this is on the proviso that the mortgage is in my name only as he apparently does not believe in 'shared debt'. I ran through the idea with him of a solicitor making up an agreement where I own more of the mortgage so that my dad's money is protected but he's having none of it. Tricky.

Well, waste of time going forward with that. If your partner came here with his side of the story, we would be strongly suggesting not to get involved with paying towards a mortgage on a property they don't have a share of. Mortgages are always on property - so effectively not to be on the mortgage means having no stake in the property - the mortgage lender will even require your partner to sign that he would have no claim on the property.

Save a deposit of your own.

Enchilada wrote: »

PS My pound sign doesn't work on my laptop!

Your keyboard is set to be US format. Set it to UK.

Enchilada_2

"Do Halifax and Nationwide know the deposit is a loan, not a gift? If not, that might scupper your plans".

I have told Halifax it is a gift. Dad has not gone through the particulars with me of repayment. This is something he said we can sort out on re-selling the house and is not priority. My salary is £26,277, not the figure I quoted. Should go up in April with my increment (hopefully!).

gazfocus

Don't forget you will need to pay stamp duty on top of your other legal fees, etc.

Foxy-Stoat_3

Enchilada wrote: »

PS My pound sign doesn't work on my laptop!

If you press the alt button and 1 5 6 then a pound sign appears....good luck with your real issue of your mortgage !!

Annisele

Enchilada wrote: »

I have told Halifax it is a gift. Dad has not gone through the particulars with me of repayment. This is something he said we can sort out on re-selling the house and is not priority.

I know you don't think it's a priority, but the lender probably will - so you need to get it sorted sooner rather than later.

So far as lenders are concerned, gifts and loans are very different things. If your dad gifts the money to you (i.e. without any intention of you paying it back) then he'll have to sign something to say it is a gift. If it's a loan, the lender will want to know how and when it's repayable - and they'll want to know that if they have to repossess, they'll get their money before your dad gets his.

Your dad being outside the UK might also cause some issues, depending on where he is - Ireland is probably OK, North Korea would be a problem.

The mortgage adviser who gave you a much lower figure for the amount he thought you could borrow - did he know the full circumstances surrounding the deposit?

Enchilada_2

I told the mortgage advisor about the deposit. I also told Nationwide and they came up with a similar figure to Halifax? Dad is also being a bit funny now and saying he doesn't want anyone to know that he's giving/lending me the money. I think it's because his account is in Luxembourg. I feel really uncomfortable outright lying about the deposit though and making up a story about having saved it or something.

Also I tried Alt 1 5 6 and it just undid everything I typed? I will see if I can change keyboard to UK (any help appreciated!).