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gifted deposit from a loan?
stripey_monkey
Posts: 3 Newbie
Hello,
My in-laws are currently wanting to buy a flat. It is 120k and because it is listed, their broker recommended a 20k deposit. I have 2 question:
1) would they be able to buy it on the mortgage guarentee help to buy scheme and so only need a 6k deposit?
2) they were considering buying it only in the wifes name as she has a longer working life left (16 years versus his 11 years so a longer mortgage and lower repayments, she also earns enough to afford it on her own), they were wondering if they would be able to get the deposit from a loan in his name and then he gifts it to her to use for the mortgage? Apparently in 2 years she gets one of her pensions or something which is more than enough to pay off the 20k loan plus some of the mortgage, I don't know if this will affect anything?
If anyone has any advice it would be greatly appriciated.
Thanks
Hannah
My in-laws are currently wanting to buy a flat. It is 120k and because it is listed, their broker recommended a 20k deposit. I have 2 question:
1) would they be able to buy it on the mortgage guarentee help to buy scheme and so only need a 6k deposit?
2) they were considering buying it only in the wifes name as she has a longer working life left (16 years versus his 11 years so a longer mortgage and lower repayments, she also earns enough to afford it on her own), they were wondering if they would be able to get the deposit from a loan in his name and then he gifts it to her to use for the mortgage? Apparently in 2 years she gets one of her pensions or something which is more than enough to pay off the 20k loan plus some of the mortgage, I don't know if this will affect anything?
If anyone has any advice it would be greatly appriciated.
Thanks
Hannah
0
Comments
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Why not wait for 2 years until their financial position improves then buy. Attempting to circumnavigate the rules will simply be a waste of effort and time.0
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Because they've found somewhere they love now (they were unaware they couldnt use a loan on a joint mortgage) and there would also be 2 years less for them to pay it off in, one of the reasons for getting it in the wofes name is she has slightly longer but its still only 16 years.0
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Bump:) If anyone had any advice it would be greatly appriciated.0
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I've no idea if they're eligible for help to buy - they should ask their mortgage broker.
As to your second question, using the husband's money to fund the deposit and then buying in the wife's sole name is unlikely to work. Broadly, the lender wants to be able to repossess if the borrower stops paying - but if the husband has some rights over the house (having paid for some of it), and the husband isn't a borrower, that makes it difficult for the bank to chuck him out.0 -
Sounds like you have more ideas that their mortgage broker!
I suspect there is much more to the case than outlined here.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0
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