Deposit source

thefrogger

Researching a lot into mortgages to try and understand the various pitfalls etc. Could someone help me with this question?

Me and my partner are looking at buying our first house. We both have decent incomes but my partner has very poor credit so only I can apply for a mortgage (we're not financially linked) The thing is, my partner has all of the deposit money.

I've read that the deposit source wouldn't be acceptable unless she was on the mortgage, which isn't possible. If she was to gift the money to me, how would a lender view that?

Thanks

Thrugelmir

thefrogger wrote: »

If she was to gift the money to me, how would a lender view that?

Thanks

Negatively. As it would give your partner a financial interest in the property.

thefrogger

What if she declares no financial interest? Is that possible?

amnblog

Gifted deposits should only come from your direct family. Parents, Grandparents, Siblings.

GMS

Have you explored the possibility of your partner being on the mortgage?

Have you engaged a broker?

What is the poor credit?

Purchase price? Loan amount?

Can you afford the mortgage on your sole income? Not ehat you think, what the lender calculators say.

Senior_Paper_Monitor

I suspect there is at least one lender who will play if properly presented - put it to a broker to avoid a lot of wasted time

thefrogger

Several defaults, one live - she's still paying it down. No broker -yet as I would like to research myself first. Yes can afford the mortgage payments on my own easily, just not the deposit.

Thrugelmir

thefrogger wrote: »

What if she declares no financial interest? Is that possible?

The money creates an interest in the property as defined by law. Irrespective of what she says. There's a risk to the lenders. Compounded by the fact that she'll be resident in the property as well.

GMS

thefrogger wrote: »

Several defaults, one live - she's still paying it down. No broker -yet as I would like to research myself first. Yes can afford the mortgage payments on my own easily, just not the deposit.

When were the defaults registered and for how much? Which are staisfied and when?

Purchase price and loan amount?

You can spend all the time you like researching but there may not be a solution you can find without seeking help of specialist. If you were told you needed a heart bypass you could research yourself but ultimately decide a surgeon is probably best placed to operate.

Not comparing a broker to a surgeon but you get the point.

amnblog

What's wrong with a scalpel and a mirror?

Sparkl

It is possible to receive a gifted deposit from a non-family member, though not all lenders will accept it.
In that situation your partner would probably need to confirm that it is a gift, not expected to be repaid and they will have no financial interest in the property.