Family gifted equity deposit

natalieb90

Hi everyone,

I am new to this so im sorry if this has already been posted in the past.

Basically I have always wanted to buy my childhood home from my dad which he now rents out. I heard of a family gifted equity deposit but did not think my dad would agree to it, i called him on the off chance and he said not a problem! i was amazed!

He has had the house valued at £115,000 and said he could gift me £11,500 (10%)

me and my partner have spoken with a mortgage broker over the past 2 and a half weeks and been gathering payslips, p60's etc.

Yesterday he approached someone for a mortgage in principle and it was declined

My dad has gave his tenants 3 months notice so i NEED this more than ever, and im afraid that if i do not get a mortgage now that my dad will just sell the property anyway as he said he is tired of being a landlord and wanted to sell anyway.

I earn £16,000 and im 24 and my partner earns £17,000 and he is 25. his credit report is better than mine, i had a default 5 and a half years ago but been a fantastic payer since. on my credit report i use 24% of available credit and my partner uses 23%. we are both on electoral role and we rent the moment. our surplus cash from a budget calculator is £1000 a month

I need to know if in anyway possible we can get a mortgage from somewhere now?

Thank you

betmunch

What has your broker advised is the next step?

He knows your situation better than you could ever describe on an online forum

natalieb90

I went to see him at 4:45 yesterday evening and he was applying for another MIP with another lender but the system wouldnt accept my previous address as it was a flat within a large house so he said he will have to try on tuesday after the bank holiday.
I am so scared that this is dammaging my credit score and i will come out of it with nothing

betmunch

But not doing anything will guarentee you come out with nothing.

Sounds like they have identified a lender who will consider the situation and is applying to them. Nothing can be done until the reopen on tuesday and he can sort out the address format

kingstreet

Why didn't you just wait the two weeks it will take for the default to fall off your credit file?

natalieb90

It wouldnt be off in 2 weeks? Its 6 more months as its been there for 5 and a half.

kingstreet

I knew something wasn't right when I said that this morning, but couldn't figure out what.

Five and a half years means five years and six months, so another six months, not another two weeks.

Long day yesterday and no alcohol!

Who are the lenders selected so far?

natalieb90

Haha! Im suprised this past week hasnt drove me to alcohol :rotfl:

The adviser hasnt told me the names of the lenders but i think the first one was skipton building society as he sent me the terms that i had to accept before he proceeded.

betmunch

You advisor is applying to lenders and you dont know who?

You have had your KFI for each application havent you?

natalieb90

I dont know what a KFI is :-( im scared now

betmunch

The KFI is the Key Facts Illustration. It tells you about the mortgage.

you must have this before an application is made. If you dont know the lender you wont know the set up costs or monthly payments.