Gift from Fiancee and family

globalnic

Hi all,

I'm after some help regarding gift contributions to mortgage deposits.

I am buying a house in my name, and intend to use a deposit comprised of half my savings, and half a gift from my fiancee and her father. The mortgage will hopefully be with Halifax.

I've looked up the gift policy, which says gifts from cohabitants/common-law partners are fine, and gifts from in-laws are fine, but as we're not married yet technically her father isn't my "in-law".

Has anyone had a similar situation, and did it cause any problems? Any experience with Halifax in particular would be really beneficial, but of course anything would help.

I'm trying to understand whether they'd allow me to accept the gift from my fiancee's father-in-law, or whether it would be considered not family. Would I have a better chance saying that the total gift is all from my fiancee, with the fact she got it from her dad being an internal family matter for her?

To clarify, she will not be on the mortgage, so I can't just claim it as a simple parental gift for her.

Thanks in advance for your help.

GN

Thrugelmir

What direct relation to you is your FIL? Certainly not family i.e. blood related.

globalnic

Thrugelmir wrote: »

What direct relation to you is your FIL? Certainly not family i.e. blood related.

Sorry, bit of a delay in replying.

No, FIL is not blood relative (would be pretty creepy if he was....). Technically though, fiancee isn't either, and isn't bound by law yet.

Should be ok according to my broker, will all go through as a gift from the fiancee, which they can accept as we're living together currently.

payless

So fianc!e is living in property, providing deposit but not on mortgage - ( so not a part owner) can't see the lender being happy, and a receipe for diaster if anything goes crazy wrong with relationship.

globalnic

payless wrote: »

So fianc!e is living in property, providing deposit but not on mortgage - ( so not a part owner) can't see the lender being happy, and a receipe for diaster if anything goes crazy wrong with relationship.

Living together in current property, not future. Broker and solicitor have confirmed no issues with the living arrangements in any case. Besides, that's not the point of the OP...

MandM90

Not a mortgage advisor, but there is a chance the lender, upon seeing the gift, will want your fiancee to sign something to say she has no claim on the property.

I had to do something to this effect as I was paid back something from a distant family member which looked like a gift as the loan had been given so long ago we no longer had evidence of it.

Given her large contribution, will her/her father be happy with this?

bellaboo86

I hope you and your fiancee are very happy together BUT what happens if it goes wrong>
Are you putting something in place that says their gifted and the gifted from your future FIL will be repaid?

globalnic

MandM90 wrote: »

Not a mortgage advisor, but there is a chance the lender, upon seeing the gift, will want your fiancee to sign something to say she has no claim on the property.

I had to do something to this effect as I was paid back something from a distant family member which looked like a gift as the loan had been given so long ago wel no longer had evidence of it.

Given her large contribution, will her/her father be happy with this?

Yes, you're right about the letter. We've got one drafted and signed, so the lender knows it's not a loan. Her and the father are fine with the loan and the letter. We've been together a long time and I'm close to the family.

globalnic

bellaboo86 wrote: »

I hope you and your fiancee are very happy together BUT what happens if it goes wrong>
Are you putting something in place that says their gifted and the gifted from your future FIL will be repaid?

Thanks for your concern.

Yes, we have that sorted.

We don't have any issues with contracts, or the relationship or anything like that. Just hoping for advice around how I can make sure the gift won't affect the mortgage application.

davidmcn

globalnic wrote: »

Should be ok according to my broker, will all go through as a gift from the fiancee

Even though half of it is from her father? Where are the funds at the moment? The solicitor is likely to want evidence of where the money has come from, and would need to report to the lender if it's not actually all your fiancee's money.

globalnic

Apologies for the radio silence, got quite busy with the home move.

So. Broker declared to Halifax on application that part of the deposit was a gift from fiancee and from FIL, but apparently they weren't bothered. My credit rating was supposedly sufficient for them not to probe into it, and so they were ok to accept and offer the loan.

Solicitor needed confirmation from the broker that they had declared it with the lender, and then I had to have gift deposit letters signed, and bank statements for money laundering checks etc. long and drawn out, but understand the need.

In the end all went through ok, and without further delay or complication (offer to completion in 5 weeks).