Mortgage broker confusion??!!

Jonny_boy4

Hi,

My partner and I are in the process of applying for a mortgage for the first time. We have a 25% deposit to put down on a 245,000 property.
The property is my Nan's house who has been in care for the past four years. For the last three years my partner and I have been living here paying rent to my parents who have power of attorney over the property. On purchasing the house 20,000 of our deposit will be money from my nan by way of a gift/early inheritance.
We have been in contact with two brokers the first finding us a mortgage with accord on a 30 yr term at 2.69% but incurs roughly 1200 in initial fees inc 295 broker fees. The second London and country advised me not to go with accord and even said we wouldn't get it as the 20,000 from my nan would be a problem as we weren't married. They couldn't find a better 30 yr term and there best was a 33yr term at 3.17% with far less fees about 300 inc no broker fee. My first broker after hearing this was astounded and couldn't believe they were trying to put me off using her and said the suggestion we weren't married and wouldn't get the mortgage was absolute rubbish!
We are very confused and don't know who to believe? The last thing we want to do is waste any time or money going through an unsuccessfull application.
Any advice is helpfull,
Thanks J

RickyC_IFSWP

I don't agree that the not married part would be an issue. See here for Accord's lending criteria: http://www.accordmortgages.com/criteria/

Search "gifted deposits" and you'll find:

"Cash gifts towards the purchase of a property can be accepted if the individual providing the gift is an immediate family member.

The following would be classed as immediate family members: Mother, Father, Brother, Sister, Child, Grandparent, Grandchild."

Given that your grandmother would be gifting you the deposit, it should fit this criteria. Go with the mortgage broker you trust. Plus, I'm sure competent brokers would speak with the lenders about the application before submitting anyway - so if they know it won't work, they'll simply find a lender who will be happy to accept it.

Senior_Paper_Monitor

Having just had an Abbey 'concessionary sale' mortgage turned down at a late stage because the couple were not married (therefore the long term boyfriend and father of their child was not a blood relative) I have just done a call round survey on this for our database.


Pleased to confirm that Accord are happy with the arrangement.


My bigger area of concern is whether the PoA holders are acting within their clearly defined responsibilities in making the gift - please ensure that they take legal advice in this matter.

amnblog

Lets not get confused here people.

This is not a gifted deposit, it is a concessionary purchase (as stated by SPM), if nan already owns it.

Accord do accept concessionary purchases but would not be my first choice.

macca1974

no idea about the mortgage side of things, but would agree with Senior Paper Monitor. I was under the impression (from an experience some years ago with my in laws) that it wasn't possible for people who acted on somebodies behalf as POA's to make a gift of that persons money for any reason. And if a gift was to be made, then it have needed at that time to be agreed by (I think) the court of protection.

No idea whether this is still the case as I think the rules changed a bit when EPA's came in, but certainly worth taking some legal advice.