Gifted Deposit from friend

sparkly_sun

Hi all,

I've had an offer accepted on a flat for £140k but I'm struggling to find a mortgage. I have a deposit of £45k. I bank with HSBC and had a decision in principle for £95k.

I went to apply for a mortgage with them but it was rejected due to my income, although I could afford the monthly repayments no problem. I earn just over £20k with no dependents. I have a £200 car HP loan with 4 monthly repayments to go.

At best it looks that I could only get £85k mortgage and Nationwide seem like the best bet. A friends has offered to make up the £10k shortfall but are gifted deposits from friends acceptable to lenders these days?

Landofwood

HSBC are very picky. There are other lenders who will get you to 5x your salary if your credit is squeaky clean.

Don't bother with the gift from a friend.

getmore4less

what about gifting £800 to pay off the loan will that help.

sparkly_sun

I could pay off the £800 and buy a cheaper car if needs be if it meant getting a 5 x salary mortgage but when I've used the borrowing calculators for all the various lenders I'm not really getting places.

Having said that, I've just this moment stumbled on Leeds Building Society and their calculator has come out at £106k if I exclude the HP which seems a far too good to be true.

To make matters more complicated, the flat is above a shop (not a food shop, just a shop in a market town). It has small bit of flying freehold where there's a sort of alley between shops that runs to the flat's own private entrance. Just read their lending criteria and Leeds won't lend on flying freehold

BUT the flat is leasehold so does this make the flying freehold not applicable?

I think I might just go and live in a tent and ride a bicycle for a simple life.

Landofwood

Don't buy a flat above a shop.

It might just be a regular shop today, but in a few years it could be a dominoes pizza and your flat will stink and will halve in value.

Contemptuous

The fact the property is leasehold doesn't make the flying freehold not applicable.