Mortgage with deposit from inheritance

icarus1984

Hi All, I think this is the right forum, If I'm off kilter let us know and I'll remove and repost elsewhere.

Following a recent bereavement I've found myself in a bit of a pickle. Essentially, following a "Sale day" in a few months time the house I've been living in for the past decade will be sold and I have no close family to board with (and a full time job and young son living nearby). I currently have a long term loan for about 7K which was taken out to assist family during a financial difficulty, this mixed with a credit card and some store cards has meant my credit file has been checked a few times recently already, that combined with a historic fault on a mobile phone bill means I have a low credit score.

Once the house has sold and the estate is wound up my debts will be repaid and my mum is seeking to invest 50k of her inheritance into a house for me, however I have a few questions in regards to all of this:

1) As no deposit is available before the sale of the house (and it's not my inheritance but rather a relatives), will I be able to speculatively agree a mortgage or will I need to move to rented accommodation for the short term whilst the estate is wound up and then arrange a mortgage?

2) Will the fact the deposit is coming from family cause an issue- my mum was planning on having it stipulated in the mortgage that the money was hers to be repaid at a later date- would this cause difficulties in getting a mortgage?

3) Will I struggle to get a mortgage due to my credit rating even though I will, after the house sale, be debt free and will have a pretty large deposit (50k for a 50-100k mortgage so LTV of 50%-66%)

Are there any other difficulties or problems that anyone can see with the above?

Din85

A deposit from family is only ok if it is a gift, and does not require paying back !

The lender would want a letter from the person providing the deposit.to that effect.

Eviesmummy

As Din85 says, the gifted deposit is fine, but your Mum would have to sign to say it is a gift, and wont be paid back. You wont get a mortgage if the money has to be repaid.
I'm not sure about your other questions, but there are others far more financially savvy than me on this this board who will be able to help. Good luck.

getmore4less

A deed of variations could make the inheritance yours it does cost but then there is no gifted deposit.

amnblog

There are a number of complications here which mean you need to engage a competent broker.