Mortgage without indefinite leave to remain, desposit in another account etc.

stephcyl

Hi All,
Am going crazy here trying to piece so many things together and will require some help from this every helpful forum and its morgage advisors:
Basics:
1. Hubby has been here since 2010 and is eligible for indefinite leave to remain from Sept (tier2)
2. I have been here since 2008 on student visa, then psw, then student visa and now on spouse visa (tier 2 dependant)

Issues:
1. We want to buy a house as prices are moving so fast in the south East, and I have seen that halifax might be able to offer hubby mortgage based on halifax's intermediaries website on working here for more than 3 years.
However, we have been saving for the deposit for the past year in my account (to separate spending from savings). I was thinking after I found out I can't get a mortgage to say am gifting the money to hubby but that won't work anymore since the giftee should have no vested interest in the property.
What can we do now? How can we legally move the money to hubby's account without the bank raising an eyebrows? Mind you, the money is both OURS but unfortunatekly we don't have a joint account.
Main reason for this is because I saw that joint cash ISA is only limited to £15k, but with individual ones we can have £15k each

2. We have 10% deposit saved. Since I won't be on the mortgage anymore, am thinking of taking a loan of extra 5% to give us a better deal on the mortgage. I can more than comfortably pay this off in 6 months. Problem 1 comes in again, anyway to legally move this money to hubby?

Thanks in advance!

Rollinghills

I think there is no issue moving the money to your husband's account - you may have to break your ISAs. The problem is you will need to wait to have at least 3 mnths of statements that do not show this transfer. Otherwise the bank will query it / ask where it is from and you'll be back to square one.

We are applying for a mortgage at the moment and I am gifting a lot of the deposit to hubby. I had not realised it was not a good idea so now seeing if it will work out or we'll be rejected.

I don't know about the not having the indefinite right to remain bit, that could be an additional issue.

stephcyl

Rollinghills wrote: »

The problem is you will need to wait to have at least 3 mnths of statements that do not show this transfer. Otherwise the bank will query it / ask where it is from and you'll be back to square one.

That's the problem. We will prefer not to wait for 3 more months as the prices here are getting more ridiculous by the day.
Thanks for answering

Rollinghills

In this case I don't think there is a way. You can bite the bullet and hope they will be ok with you gifting the deposit. I think you should find a good broker who can find the lender who will be most likely to give you a mortgage based on these complications.

[Deleted User]

You can give your savings to your husband, as long as you write a "gifted deposit" letter to the bank confirming it's a gift not a loan, and that you will not have a claim on the home.

Same as people getting help from their parents or grandparents towards their deposits.

Rollinghills

Cherry_Gale wrote: »

You can give your savings to your husband, as long as you write a "gifted deposit" letter to the bank confirming it's a gift not a loan, and that you will not have a claim on the home.

Same as people getting help from their parents or grandparents towards their deposits.

No, it's not the same because the parents / grandparents wouldn't be living in the house in the same way the wife would. But I think there are lenders who would be ok with it (and some like Santander who say from the outset in their lending condition that they would not accept it).

Stephcyl - have you found a place yet? Has your offer been accepted? if not that process can easily take 3 months

I also think not having the indefinite right to remain is your bigger issue. I'd look for a broker now before you find a place you like and then get disappointed.

DTDfanBoy

Providing you aren't on the deeds it should be possible. We wanted to use First Direct but as I didn't have ILR at the time, and we wanted to make use of the first time buyer stamp relief, everything was done in my wife's name.

First Direct just wanted confirmation that the money was a gift and required me to sign something which would allow them to get me out of the property if they had to repossess.

Rollinghills

Oh and you should post on the mortgage forum, there are some brokers there who can advise
http://forums.moneysavingexpert.com/forumdisplay.php?f=15

casper_g

Surely a bank shouldn't have a problem with the money having been in a spouse's account? It's perfectly common for a married couple to hold funds in one or the other's name, especially to take advantage of ISAs which AIUI can't be held jointly. We do this, and I don't think of it as a "gift" when we transfer something: it's jointly held money, a marital asset.

Has anyone actually experienced a bank taking issue with this sort o thing, or are they just assuming the same rules apply as for any other gift?

Rollinghills

Yes, santander says

We will not accept a gifted deposit if:

the person providing it will be living in the property, but is not named on the mortgage; or
there is a beneficial/equitable ownership/interest in the property.

[Deleted User]

Rollinghills wrote: »

No, it's not the same because the parents / grandparents wouldn't be living in the house in the same way the wife would. But I think there are lenders who would be ok with it (and some like Santander who say from the outset in their lending condition that they would not accept it).

Actually, I can see that might be more complicated, probably best to know your lender. I had a gifted deposit, and a lodger, both had to write to say they had no claim on the flat. They were different people though.