Mortgage Deposit from Father

Wilco81

Hi

I live with my Father, towards the end of the year I will be wanting to apply for a Mortgage and buy the flat we are living in.

He will be giving me money towards the deposit on the flat, he won't be wanting any of it back in the future as anything he has when he has gone will be going to me anyway.

The deal we have is that he pays the bills and I currently pay the rent and hopefully in the future a Mortgage.

I was just wondering if this will be an acceptable source of deposit as he will be contributing towards the deposit whilst also living there as a non dependent, I saw on another thread that this may be a problem ?

I will have no problem declaring to any Mortgage company that my dad will be living with me as a non dependent and that he is contributing towards the deposit, it will be a gift to me and I would have no problem getting him to sign a letter etc saying as such.

I would appreciate any advice on this as I do not want to fall foul of anything when I go to make a Mortgage application.

Thank you for any advice :beer:

Teqpro

Hi,

Just be honest with your future lender, the gift deposit letter from your father will fine so nothing to worry there but you are responsible for paying all the bills and the mortgage. Tell your solicitor he will be living with you. Good luck!

kingstreet

There will be a few issues with this.

Lenders don't like someone contributing to the deposit who will reside in the property but won't be party to mortgage nor ownership.

Some may have an issue as he will already be residing in the property, prior to completion.

amnblog

Teqpro wrote: »

Hi,

Just be honest with your future lender, the gift deposit letter from your father will fine so nothing to worry there but you are responsible for paying all the bills and the mortgage. Tell your solicitor he will be living with you. Good luck!

Sorry Teq - lots to worry about

amnblog

kingstreet wrote: »

There will be a few issues with this.

Lenders don't like someone contributing to the deposit who will reside in the property but won't be party to mortgage nor ownership.

Some may have an issue as he will already be residing in the property, prior to completion.

KS hits the nub of the matter as usual.

Teqpro

I'm no expert but I've learnt from KS in the past.

Wilco81

Thank you all for the advice.

@kingstreet

Is it even worth trying to move forward with this, or would I be wasting my time and the time of a Mortgage Adviser ? Which is something I would not like to do.

Is my only option here, to carry on renting ? as the property is ideal for both myself and Father to live in and we really do not want to move, it would be a shame to not be able to buy it.

Thanks again

kingstreet

Get an independent broker to establish your options, then decide if you want to proceed.