House deposit - loan from my parents

georginag123

Cypherite wrote: »

I notice a lot on here that a lot of FTB are looking at what seem to be expensive houses. Is 200k the most affordable house in your area? Just curious.

Yes, pretty much! We have a good combined income. Unfortunately we were planning to buy using the HTB scheme. However, we have an A4 credit rating and Halifax requires at least an A3 to qualify.

georginag123

sinizterguy wrote: »

From Halifax or Help to Buy ?

It certainly is not from Halifax.

My mortgage had a lot of to-ing and fro-ing between my mortgage advisor and Halifax, with lots of extra documentation requested and sent. It was approved without any other hassle.

What additional document was required if you don't mind me asking?

georginag123

Funny_old_game wrote: »

Any callback is an outright decline by them. If your solicitor says its ok they are wrong.

Sorry, what do you mean by callback? Sorry... New to this!

Kim_35

Hi there


We are going though a similar situation:


Dad was providing us with a 'repayable gift' (only to be paid back in the event of us separating and the house going up for sale so that the money is safeguarded) and my solicitor advised we were to make Halifax aware of this, if we didn't now, it would come out later when the solicitor was in talks with the Halifax and halt proceedings & decline the mortgage offer.


Halifax would not accept this in the end - luckily we are now getting the money as a gift that is non repayable.


The only way you would get round this is by stating that the money is a gift and that no legal documents were to be produced & set up an agreement with your parents to pay the money back (in other words your parents trusting that you would repay the money back)


Hope this helps

georginag123

Kim_35 wrote: »

Hi there


We are going though a similar situation:


Dad was providing us with a 'repayable gift' (only to be paid back in the event of us separating and the house going up for sale so that the money is safeguarded) and my solicitor advised we were to make Halifax aware of this, if we didn't now, it would come out later when the solicitor was in talks with the Halifax and halt proceedings & decline the mortgage offer.


Halifax would not accept this in the end - luckily we are now getting the money as a gift that is non repayable.


The only way you would get round this is by stating that the money is a gift and that no legal documents were to be produced & set up an agreement with your parents to pay the money back (in other words your parents trusting that you would repay the money back)


Hope this helps

Thank you for your advice. Very useful!

mrginge

Kim_35 wrote: »

'repayable gift'

I do like a nice oxymoron.

sinizterguy

georginag123 wrote: »

What additional document was required if you don't mind me asking?

Additional payslips.
Bank statements bang up to date (on the day).
Companies House documents to prove ownership/shareholding in company.
Signed accounts for past three years for the limited companies involved in the query.

I am currently salaried with a 10% shareholding of a limited company which is a holding for two other limited companies.

SA302s for my previous years as self employed.

That's what I remember.

georginag123

sinizterguy wrote: »

Additional payslips.
Bank statements bang up to date (on the day).
Companies House documents to prove ownership/shareholding in company.
Signed accounts for past three years for the limited companies involved in the query.

I am currently salaried with a 10% shareholding of a limited company which is a holding for two other limited companies.

SA302s for my previous years as self employed.

That's what I remember.

That's great to know, thanks. My partner is also a shareholder of a company and so has had to submit three years of accounts plus SA302s... We should hear tomorrow. Fingers xrossed! I am a teacher so fairly straight forward in comparison!

Funny_old_game

Sorry, bad typing earlier. Maybe a broker could copy and paste from the deposit section of their rules that if not a complete genuine gift you will struggle to get offered.

Also when asked " where is your deposit coming from?, what did you say as it should have fallen out if bed then!!!!!!

In the grand scheme if things A4 is not a good score for HTB. Post 15 says it all.

Ianwzzz

We lent our daughter money for a deposit and the building society took that into consideration as a debt of hers which meant she couldn't afford the mortgage. We then had to write a letter to them stating it was a gift and not a loan and we had no interest in the property. My daughter is still paying us back monthly.