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Gift deposit from uncle not accepted by lenders
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don't tell 'em Pike
(how did they know it was a gift?)The questions that get the best answers are the questions that give most detail....0 -
There is a standard letter - probably existed for 5 years plus now which confirms the funds are a gift and that the donor will have no legal interest in the property.
It must come from the person making the gift.
I notice a few people go with the Leeds - tricky lender in my book I've used them once in 8 years and that was for 4 applicants so not much choice really at teh time. Dislike the 5.99% SVR Ouch!!Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Leeds SVR is 5.69%, Accord's is 5.99%.
Both are a good reason to avoid the lenders in question. When you can.
Leeds is useful for sub £80k 95% newbuild shared ownership. I wouldn't dream of using them for anything else.
I only linked the gifted deposit stuff because I'd seen it earlier in the week.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
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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.
Wouldn't the Mortgage lender have a 1st Charge on the property thus negating any other possible party claiming an interest?"Killing Jesse James don't make you Jesse James"0 -
Wouldn't the Mortgage lender have a 1st Charge on the property thus negating any other possible party claiming an interest?
Not the property that's at issue. It's the funds that provided the deposit. The property can be forcibly sold in order to repay them. Insolvency Act 1986 springs to mind as one such piece of legislation.0 -
kingstreet wrote: »Leeds SVR is 5.69%, Accord's is 5.99%.
Both are a good reason to avoid the lenders in question. When you can.
Leeds is useful for sub £80k 95% newbuild shared ownership. I wouldn't dream of using them for anything else.
I only linked the gifted deposit stuff because I'd seen it earlier in the week.
Thanks for clarifying on the rate I knew it was high and why I avoided them both.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Thrugelmir wrote: »Not the property that's at issue. It's the funds that provided the deposit. The property can be forcibly sold in order to repay them. Insolvency Act 1986 springs to mind as one such piece of legislation.
Probably the Law of Property Act 1925 in this case - the act you quote would be for personal insolvency not a mortgage default and repossess.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Probably the Law of Property Act 1925 in this case - the act you quote would be for personal insolvency not a mortgage default and repossess.
Creditors can legally recover funds from debtors. The fact that the money was gifted to a third party is of no relevance. Hence why source of funds is so key to the mortgage lender.0
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