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

casper_g

Rollinghills wrote: »

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.

I suppose my question would be whether they would consider this a gifted deposit? What are the rules for that? A transfer of funds from an ISA in a wife's name is not the same a a gift from someone outside the purchaser's household. The name on the account is not necessarily the same as the owner of the money.

stephcyl

casper_g wrote: »

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?

That would be logical but banks ain't always

stephcyl

DTDfanBoy wrote: »

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.

Thanks, but neither of us has ILR. That's the problem

stephcyl

Rollinghills wrote: »

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

Thanks. Just did

Rollinghills

casper_g wrote: »

I suppose my question would be whether they would consider this a gifted deposit? What are the rules for that? A transfer of funds from an ISA in a wife's name is not the same a a gift from someone outside the purchaser's household. The name on the account is not necessarily the same as the owner of the money.

YES! Definitely. This was our mistake. I thought it's 'our money' but I had to sign the gifted deposit form when 'giving' the deposit money to my husband

DTDfanBoy

casper_g wrote: »

I suppose my question would be whether they would consider this a gifted deposit? What are the rules for that? A transfer of funds from an ISA in a wife's name is not the same a a gift from someone outside the purchaser's household. The name on the account is not necessarily the same as the owner of the money.

They want to ensure that only the person named on the mortgage owns the entire property, so they won't allow anyone else to be named on the deeds or to have any other sort of financial interest in the property.

varghesejim

stephcyl wrote: »

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!

Presumably you are getting a personal loan for the extra 5 percent.

Your personal loan rate is much bigger than your mortgage interest rate, so by taking a personal loan you are at net loss (taking an expensive loan to pay off a cheaper loan!).

Just overpaying your mortgage with your extra income will save you more.

stephcyl

varghesejim wrote: »

Presumably you are getting a personal loan for the extra 5 percent.

Your personal loan rate is much bigger than your mortgage interest rate, so by taking a personal loan you are at net loss (taking an expensive loan to pay off a cheaper loan!).

Just overpaying your mortgage with your extra income will save you more.

Not necessarily. If we have only 10%, the rate will be about 4.59% for the initial 2 years while 15% brings it to 2.69% for the 2 years.
I can get a loan of £15k for 3.6-3.7% from Sainsburys or Nationwide for 2-5 years which I can pay back before the end of the year. That way I would have saved us quite a bit of money. Infact, with 10%, my repayments will be about £400 more per month:mad:
Unless there are other things I haven't thought of about the maths and that's it's bot as straightforward as I thought

PurplePow

When me and my (then) boyfriend bought our flat he had to go on the mortgage on his own. I transferred over my half of the deposit, signed something to say it was gifted, and that was it! This was with Halifax.

stephcyl

PurplePow wrote: »

When me and my (then) boyfriend bought our flat he had to go on the mortgage on his own. I transferred over my half of the deposit, signed something to say it was gifted, and that was it! This was with Halifax.

Thanks purple. How long ago was this?