Gifted Deposit Query

Firefly1710

Hi, applying for a mortgage through Santander - large part of deposit/ and or stamp duty/ solicitors fees was expected to be gifted from father in law. My wife will live in the property but not be on the mortgage. Will this be an issue assuming he signs to confirm it's a gift and no interest in the home etc? I know that if it was direct from my wife it would be a problem but it doesn't suggest this scenario on the intermediary guide.

If needs be I have quite sufficient equity in a vehicle I can sell quickly for less than its worth to raise the would be gifted amount but would rather not.

Thanks in advance.

TCPPC

how much is the deposit/gift and the property you are purchasing

they will look at this plus your household income

Firefly1710

Thats for your reply, Its a H2B new build, purchase 260, dep 5%. I will have saved the whole deposit by completion but the gift will be needed for stamp duty/ sols fees.

DevCoder

Not too sure about the wife living in the property but not on the mortgage thing. What will your "single" income against outgoing mortgage payment ratio be?

TCPPC

with the mmr they will look at your affordability
i.e your in and out

after my mortgage we still had 78% income left, so with you being the only one being consider unless you have a really high income (considering you can save up 13k already) plus low LTV

if you pass that then they will ask you to fill a gift donation form

Twiglet21

It sounds like you may be confusing things too much. If your parents wish to gift you a sum of money all they need to do is sign a generic solicitors letter confirming that it is a gift and that you will not be expected to repay. Of course you may want to repay them and that may be your informal agreement but for the purposes of paperwork this is what they must do. I'm not sure that the issue of your wife living in the house has any bearing at all. From very recent personal experience I would however suggest that when they have signed the letter they transfer the money to your solicitor as soon as possible to prevent hold-ups near to completion

Yorkie1

Twiglet21 wrote: »

It sounds like you may be confusing things too much. If your parents wish to gift you a sum of money all they need to do is sign a generic solicitors letter confirming that it is a gift and that you will not be expected to repay. Of course you may want to repay them and that may be your informal agreement but for the purposes of paperwork this is what they must do. I'm not sure that the issue of your wife living in the house has any bearing at all. From very recent personal experience I would however suggest that when they have signed the letter they transfer the money to your solicitor as soon as possible to prevent hold-ups near to completion

The issue is that the gift is coming from someone who is not related to the sole mortgage holder.

-Cheryl-

They will take it as u the sole owner of the place.

yoshiyella

The person giving the gift will also be bankrupcy checked and will have to sign that they have no intention of living in the property