Deposit query

glasgowgirl80

Hi all, I am currently trying I buy a house, I am married but making the purchase alone. I have been approved for HTB and have submitted my mortgage application, but am worrying about my deposit. Right now all of the deposit is in my account, but about half of it came from my husbands account - will this be considered a 'gift'? I am still waiting to hear back from my solicitor on this but would appreciate any advice. Is this going to be an issue? He will be living in the house by the way. Thanks in advance.

DpchMd

How long ago did he transfer it?

glasgowgirl80

Oh just about ten days ago! If I had known this might have been an issue we would have done it ages ago...

DpchMd

Either way you would legally have to declare source of funds. If he had transferred a long time ago, you may have got away with being flexible with the truth.

Solicitor will ask for proof of deposit and bank statements to confirm source. Your lender will have a problem with the source being a partner who is living in the house but not on the mortgage.

Thrugelmir

glasgowgirl80 wrote: »

Hi all, I am currently trying I buy a house, I am married but making the purchase alone. I have been approved for HTB and have submitted my mortgage application, but am worrying about my deposit. Right now all of the deposit is in my account, but about half of it came from my husbands account - will this be considered a 'gift'? I am still waiting to hear back from my solicitor on this but would appreciate any advice. Is this going to be an issue? He will be living in the house by the way. Thanks in advance.

The obvious question then is why your husband is not party to the application. You cannot simply circumnavigate the lending rules by ignoring him.

glasgowgirl80

In not trying to 'get away' with anything, it's all joint money really, it was just split across the two ISAs due to the deposit limits being lower previously.

My broker seems to think the lender wont have a problem with it but I feel like it might be an issue. I can provide statements etc for the solicitor, I'm just not sure if I need to declare it as a 'gift' because it came from somebody else's account.

glasgowgirl80

My husband is not on the application as he already owns a property with somebody else, so we were not eligible for HTB jointly. I have been approved for HTB already and they know I'm married so it obviously wasn't an issue for them. My broker tells me she sees this scenario quite regularly (married people taking out sole mortgages) for various reasons and it's not a problem. I don't see how it's trying to 'circumnavigate' the rules if all parties are aware of the situation...?

Thrugelmir

glasgowgirl80 wrote: »

In not trying to 'get away' with anything, it's all joint money really, it was just split across the two ISAs due to the deposit limits being lower previously.

My broker seems to think the lender wont have a problem with it but I feel like it might be an issue. I can provide statements etc for the solicitor, I'm just not sure if I need to declare it as a 'gift' because it came from somebody else's account.

If your husband was named on the mortgage application then the deposit wouldn't be an issue. As he is not. It immediately raises questions. The fact that he is contributing to the deposit but is not to be named the mortgage does create issues. The issue is far more complex than just being a "gift" as far as the lender is concerned. .

glasgowgirl80

Yes you are right, it would be a lot easier if he was named on the mortgage but he can't be because of the HTB issue. I didn't realise this would be such a headache and have been following the advice of my broker who knows all the details and hasn't seemed concerned about it.

Could this issue of the deposit actually stop me buying a house? I am very worried about this now. My husband is happy to sign something to say he wants no ties to the property (other than living in it!) would this help?

kingstreet

Have you told the Scottish Government someone will be resident in the property, not named on the mortgage or ownership who owns a property elsewhere?

The HTB Agents in England do not like such a scenario.

On the lender/deposit thing, some lenders won't lend in the scenario you describe. If your broker says the lender he has selected is happy with it, you can only go off that.

stalkah

You could be separating and this is his payment to you, he's then going to live in his property and you in your new one