Sole Mortgage, but partner has deposit

goodwinsmith

Hi all,

I've looked through the forum and have seen this situation mentioned a few times. It seems rare, though, and appears to be some grey area. Would appreciate any advice you have.

I'm in a civil partnership. My partner is retiring within weeks and he'll receive a pension from his work, along with lump sum of ~£50k. I have about £12k saved myself. We'd like to combine this to make a sizable deposit. Unfortunately, his credit is bad from defaulted credit cards. It's all under control, just left with a bad score. I would like to purchase the house myself as my credit is much better, but it's the deposit causing problems.

Some vitals: Partner is mid-50s I'm mid 30s. Looking to purchase a home out of London for no more than £250k. My personal income would see me pass affordability checks easily. Currently renting an affordable flat in London, which we'd continue to use during the week.

I've read lenders dislike/flat refuse gifted deposits from people planning to reside in the house.

Question 1: If my partner wants to move his main residence to the new house, are there any lenders that would provide a mortage in my situation?

Question 2: if my partner keeps his residence as our London flat, will this be a problem? He'll certainly *use* the house out of town, but we'd be predominately based on London for the foreseeable.

Follow up: Under what circumstances would my partner *ever* be able to switch his residence to the new house? If Iwere to remortage, or when the lender no longer has a claim on the property?

Appreciate this is a unique situation. All advice welcomed.

Thrugelmir

goodwinsmith wrote: »

I've read lenders dislike/flat refuse gifted deposits from people planning to reside in the house.

The gift potentially creates a beneficial financial interest in the property. That's the reasoning behind why they are normally not accepted.

Nothing unique in what you are suggesting. Many people try to circumnavigate the rules. Consult a broker for advice. As better you approach the issue in a proper manner.

goodwinsmith

Thanks Thrugelmir. It was my broker who flagged it initially. Speaking with him again tomorrow, where I hope to learn if some lenders will play ball. I'll take some comfort in this not being unique. Fingers crossed a navigable route emerges.

I wonder if anyone has insight into the question of residing in the property. I will have two properties: one rented and the other owned (well, with the mortgage) that we'd go between.

Thrugelmir

goodwinsmith wrote: »

Thanks Thrugelmir. It was my broker who flagged it initially. Speaking with him again tomorrow, where I hope to learn if some lenders will play ball. I'll take some comfort in this not being unique. Fingers crossed a navigable route emerges.

Has your broker advised against a joint mortgage application?

goodwinsmith

No, but I'm assuming any joint application would mean a rejection. My partner has bad credit from multiple credit cards. Default payments, etc. However no CCJs or bankruptcy.

I'm concerned about making a joint application, being rejected, then this negatively impacting my ability to apply on my own. I never thought to pursue a joint application because of his credit, though equally didn't anticipate this deposit situation in light of a sole application.

Any advice on joint app in light of the above?

kingstreet

Ask your broker to find you a lender which will;-

accept a sole mortgage/purchase for a "legal" couple
accept the part-gifted deposit from your civil partner
accept the civil partner will reside in the property.

Some don't like the above. Others will live with it, or won't ask.

If your broker looks at you like you've lost the plot, it's time to find another broker.

goodwinsmith

Thanks Kingstreet. I will do this thing that you say. This is by far the most ideal situation.

accept a sole mortgage/purchase for a "legal" couple

I understand this point to mean the lender should be one open to only one member of a married/CPd couple making the application. Is that correct?

In terms of a joint application, any advice for someone in my situation? Partner with crap credit, buy no CCJs or bankruptcy. Is it all much of a muchness at that stage? I've been so careful with my credit for so long now, I daren't risk being financially associated with him (his ears are burning, poor sod)

kingstreet

Yes.

Speak to a broker about the possibility of a joint mortgage, accepting the need for a higher deposit and higher rates.

Compare the options.

Vicky0409

Hi,

I have the same problem, my myself and my partner are buying a house, although the mortgage is going in his name only as our joint application was declined due to my credit score.

My stepfather is gifting a £27,000 deposit to help us get in the ladder.

We have been advised by our broker that the mortgage company won't accept the deposit coming from my side of the family, and it needs to come from my partners side.

We are totally stuck as what to do!!

They are asking for a gift letter from partners side, is this all that's required to get round this situation. My stepfather is willing to pay the money to my partners mum, for her to then gift it to us. HELP!!!! :o

kingstreet

Is the lender recommended the only lender open to you?

Ask the broker to recommend a lender which won't have a problem with the deposit being gifted from your side.

Vicky0409

We can only get this mortgage with Precise mortgages, as my partner has 2 defaults from 2013.