Implications of borrowing from relative towards deposit

Dubito_ergo_sum

@Yorkie1 the mortgage will be in my name only.

@Thrugelmir I am not sure I understand what you are saying, but its not a gift its a loan.

@amnblog may i ask why you say that ?
we are in an anomaly of low interest rates, fixing for as long as possible seems the logical way to make the most of it, so i am intrigued, may i ask why you say that as FTB i shouldn't be looking at 10y ?

amnblog

A 10year fix will cost you fees to get out of if your circumstances change and you need to sell and cannot port your deal.

A first time buyer will hardly ever not need to revise their mortgage arrangements for a 10 year period.

Dubito_ergo_sum

The mortgage is portable and Ive lived in the same house for over 6 years now and have been with the same company for longer than that and im in a long term relationship, so my circumstances are stable and I like having the peace of mind, knowing that for the next 10 years my mortgage amount will be £x, no matter what interest rates do, and frankly i doubt they will still be this low in 10 years, so seems like a win-win all around.

amnblog

You assume you will be able to meet the underwriting criteria at a later date to port the product. This is not a given.

I wish you well.

chambta

I'd stick with an 85% deal personally.

Thrugelmir

Dubito_ergo_sum wrote: »

@Thrugelmir I am not sure I understand what you are saying, but its not a gift its a loan.

Lender will not accept the money as being a loan. The money has to be advanced as a gift. This is standard lending practice.

The lender may not find the source of the gift as being acceptable.

Yorkie1

Dubito_ergo_sum wrote: »

@Yorkie1 the mortgage will be in my name only.

Thrugelmir wrote: »

Lender will not accept the money as being a loan. The money has to be advanced as a gift. This is standard lending practice.

The lender may not find the source of the gift as being acceptable.

I suspect that Thrugelmir is correct. Close relatives (not sure if brothers are counted as such for mortgage purposes) usually have to be related to the borrower and not the borrower's partner if the partner is not on the deeds / mortgage.

I think this looks increasingly like a non-starter.

Mokka

The lender will be worried that the person providing the loan would have an interest in the property should things go wrong for you.
Lenders are so fussy these days it's best to keep things simple as the smallest thing they don't like can cause refusal.