Gift deposit from uncle not accepted by lenders

kmoggy

Trying to get a mortgage and it's one thing after another. I have been gifted 75000 deposit from my aunt and uncle and no one is going to accept us as they are not blood relatives. Is there anyway around this? My partner has less than 2 years credit history..so that's against us, I just changed job so that's against us.. I just feel like they make it so hard for decent folks to get on property ladder despite us having a big equity stake and passing all affordability checks. Penalised for the fact we aren't in debt and have a deposit. It's sucks

somethingcorporate

Have you tried a broker? Let them do the hard work for you. It doesn't sound like your situation you should struggle to get a mortgage and I am sure with the right advice you'll get what you want.

lovehackney

Have they signed a letter confirming its a gift?

Thrugelmir

kmoggy wrote: »

Penalised for the fact we aren't in debt and have a deposit. It's sucks

The rules have been in existance for a very long time. Lenders aren't interested in taking unnecessary risk. For what to them is a very low margin business.

Your_Hero

kmoggy wrote: »

Trying to get a mortgage and it's one thing after another. I have been gifted 75000 deposit from my aunt and uncle and no one is going to accept us as they are not blood relatives. Is there anyway around this? My partner has less than 2 years credit history..so that's against us, I just changed job so that's against us.. I just feel like they make it so hard for decent folks to get on property ladder despite us having a big equity stake and passing all affordability checks. Penalised for the fact we aren't in debt and have a deposit. It's sucks

Lenders don't like this as you have found because it may not be a true gift from your uncle or aunt. It is difficult to prove this would be a true gift and the lenders are wary that you may need to repay this back or creates a charge on your property. After all, why would someone give you £75,000 for free?

This gift causes problems as they may have an interest on the house and could create ownership issues if the house needs to be repossessed and the lender may themselves in all sorts of trouble.

Perhaps your uncle could buy one in his name and you could pay the mortgage? Eventually when your credit is ok, then you can buy him out with a mortgage in your own name.

kingstreet

Why aren't they blood relatives?

Have you only considered going direct to lenders who insist on donor being parent, grandparent or sibling? Which lenders?

Any independent brokers?

Zoology_Dragon

Surely they are blood relatives? I don't claim to know the rules (because I don't) but I'd be surprised if aunts/uncles aren't considered to be close enough relatives. Seems odd to me.

kingstreet

As an example, this is from the Leeds BS website, but AFAIK the bit about the regulator is tosh;-

Gifted Family Deposit: Gifted deposits from family members as defined by the regulator (spouse, parent, grandparent, sibling, child or grandchild)

http://www.leedsbuildingsociety.co.uk/_resources/pdfs/intermediaries-pdfs/mortgage-lending-criteria-and-guidance.pdf

tvfreek

Lender's are perfectly OK with gifted deposits although each lender will have a different stance as to how close the relationship needs to be.

Contrary to previous positings this is no issue with this form of deposit.

I would recommend you speak to a broker who will I'm sure be able to advise you on what is a very straight forward case.

single_lonely

definitely recommended speaking to a broker.
(there will be fee's if you decide to apply for mortgage through them, but will be cheaper).
I would have thought a letter from solicitor from you relatives saying its a gift would suffice along with PROOF and a paper trail of where the monies come from. With these 2 things I don't think you should have a problem.

Yorkie1

single_lonely wrote: »

definitely recommended speaking to a broker.
(there will be fee's if you decide to apply for mortgage through them, but will be cheaper).
I would have thought a letter from solicitor from you relatives saying its a gift would suffice along with PROOF and a paper trail of where the monies come from. With these 2 things I don't think you should have a problem.

The point is not the letter / money laundering issue.

The point is that all lenders have different rules about who they will accept a gifted deposit from. Where the gift comes from a relative, each lender will have their own list of 'acceptable' relatives. If the gift comes from a relative who is not on that list, then the gift will not be acceptable to the lender, irrespective of letter / ML issues.