Not allowed to use gift from God-mother as deposit!

Kwj17

Hi. This is my first post so be kind!
We have recently moved to new area, sold our old house and have a significant deposit sitting in the bank waiting to go. Our problem is that I am working as a supply teacher so my 'salary' won't be taken into consideration
We have seen a house we are keen to buy but on just my husbands salary we are £40k short! Over Christmas, my (Fairy) Godmother offered us the £40k to be paid back when we can re-mortgage in 2 years, using both salaries (i.e. When I find a permanent teaching post). We were delighted and after agreeing the terms with all parties approached a couple of Mortgage lenders...
It turns out we are not allowed to use my Godmother's money! We can only use money from immediate family! Has anyone heard of this before? It seems ridiculous to us... Not sure where to go from here, can anyone think of a way around this (that obviously isn't illegal!)
Thank you!

ViolaLass

If you have to pay it back, it's not a gift.

chanz4

none starter its a loan

md87

In law it would need to be a gift for you to proceed on that basis, but what you have described is a loan. If a contract of some sort was signed stating that the money was a gift then you could use it. Technically you can still pay it back (but you won't say this to the lender) but legally the person lending you the money has no right to recover it if it is given to you as a gift. I.e they will have no security just your word that you will pay it back. Hope I make sense with this.

Let_Us_See

Not an impossible position, even without the proposed "loan."

Please confirm your husband's and your gross annual incomes? How long have you been supply teaching?

Thrugelmir

Kwj17 wrote: »

We can only use money from immediate family!Has anyone heard of this before? It seems ridiculous to us...

Many times before. Lenders set their policies according to the impact on them of broader aspects of law. Such as the Insolvency Act 1985.
Lenders money, so lenders rules.

Senior_Paper_Monitor

There are a couple of lenders who will probably accept this as a correctly structured interest free loan.


Stop trying to do this yourself and get a good, experienced mortgage broker on the case.

amnblog

Sounds like you do not need your Godmother's money as much as a good mortgage broker.