How do I demonstrate Daddy's deposit?

Colto

So I'm viewing a property on Monday the 16th, its hot, and ideally I want to make an offer for it then and there. However Ive not even approached a mortgage lender as of yet. Time is of the essence because its a very nice property, and I wonder will getting a mortgage with the estate agent in question Your-Move help secure the property?

Anyway I can theoretically afford the house on my modest income with a £20000 deposit from Dad, although by most peoples standards money will be tight. I'll maybe only have £50 pcm spare contingency money for everything else in life. Will lenders automatically discount a buyer if they only have £50pcm spare after all costs? I mean Ive got no dependents, only a student loan, perfect credit history etc. etc. I'm disabled and live a very modest lifestyle.

I guess it will be easy to prove my circumstances. However I suppose the main thing a lender will want to know is about Daddys deposit. To prove Dads deposit do I just have to present a bank statement showing £20000 then I'm sorted; and will having such a statement ready now speed things up at such an early stage? Regards!

Caz3121

Lenders will need to run affordability checks. They may well test the affordability if mortgage rates increase in which case your £50 per month may end up as a negative number
Your father will be required to submit something to confirm that the deposit is a gift and there is no repayment required. Not all lenders will accept a gifted deposit
I suspect you will be best speaking to a mortgage broker

Anzhelka

I think you may not pass affordability check...as 50pcm is not enough protection to them in case if interest rate with raise. Regarding gifted deposit your father will need to sign the form , that he is not asking for this money back and also provide bank statement to show, what is the source of this amount. They will also do some credit checks on him.

csgohan4

Why the rush to buy a house and squeezing your money to the max?


boiler breaks down that's 2-3 k, can you afford that?

Colto

Thank you for the quick replies guys. When I see it in writing like this my position does seem desperate, but there is hope. I'll go to a mortgage broker first today.

csgohan4 wrote: »

Why the rush to buy a house and squeezing your money to the max?


boiler breaks down that's 2-3 k, can you afford that?

Thank you for the words of advice and normally I'd heed them. However to be honest my financial situation isn't so dire as ive made it out to be. Ive got a lot more financial backing in the near-future, but just not at the moment, and I'm not in a position to prove it with any immediacy either because my parents are not here. This topic is really about what I can prove right now with a view to making a quick offer, and it retrospect it doesn't look like I can prove much.

The rush is really about the quality of house on offer. The owner of the property wants a fast sale, and Ive coincidentally literally only just started looking myself. The property is head and shoulders above anything else on the market.


Any ideas on whether a mortgage via your-move will improve my chances with the sellers? I should think Your Move are just the middle-man, so the property owner wont care whether Ive got a mortgage through Your-Move right? :beer: Infact I'm a bit worried the agents might try to hike the price if they learn too much about my finances...

csgohan4

Please what ever you do avoid EA services, either conveyancer or mortgage advisors. They get commission and guess who pays it?

AnotherJoe

Colto wrote: »

Thank you for the quick replies guys. When I see it in writing like this my position does seem desperate, but there is hope. I'll go to a mortgage broker first today.



Thank you for the words of advice and normally I'd heed them. However to be honest my financial situation isn't so dire as ive made it out to be. Ive got a lot more financial backing in the near-future, but just not at the moment, and I'm not in a position to prove it with any immediacy either because my parents are not here. This topic is really about what I can prove right now with a view to making a quick offer, and it retrospect it doesn't look like I can prove much.

The rush is really about the quality of house on offer. The owner of the property wants a fast sale, and Ive coincidentally literally only just started looking myself. The property is head and shoulders above anything else on the market.


Any ideas on whether a mortgage via your-move will improve my chances with the sellers? I should think Your Move are just the middle-man, so the property owner wont care whether Ive got a mortgage through Your-Move right? :beer: Infact I'm a bit worried the agents might try to hike the price if they learn too much about my finances...

LOL. You are being far too optimistic. You are in no position to make an offer because you do not even have a mortage offer in principle, will fail affordability checks in any case, and you don't have the money that is mysteriously coming in the future, right now.

Now is when you are making your offer. If the agents knew about your finances they wouldn't raise the prices, they'd say you were not proceedable, and not accept your offer.

You need to see a broker first. They will tell you what you need to do to get into a position iof being able to make offers, and what you can afford.

Newbiebuyer2016

For a gifted deposit we had to provide a letter, show where the money had come from and also passport of the person gifting.

Have you also thought about fees? We had to pay solicitors and lenders fees you may have stamp duty?

Our lender is being fussy and our mortgage is only 1/4 of our total income!

How do you know your will have £50 left over when you have even tried to apply to a mortgage?

Have you looked at the council tax band? Ours was and extra £30 a month to what we have now.

I can't see how your in a position to put an offer in.

Colto

Thanks Newbiebuyer I see it is totally out of the question to simply print off a bank statement now. To answer your questions I see there are a variety of ways of splitting fees across a mortgage; as in upfront, through interest, or pay later. Stamp duty doesn't apply to the property in question (though you might think otherwise from looking at it). I have enough bank to cover solicitor fees. On the Rightmove website theres a mock mortgage calculator; therein using an interest rate of 4.5% for a 25 year mortgage my disability payments alone can pretty much cover it (with the Mortgage Guarantee scheme). Although I realise a 4.5% interest rate is subject to change, my mortgage will also be subject to an early payoff. The council tax band of the property in question is a couple of bands lower than this one so yeah I save money there.

I booked a telephone appointment with a mortgage broker later today. My questions now are: can joint mortgages function in conjunction with the Help to Buy - Mortgage Guarantee scheme (guessing no), and if not... might a mortgage lender take account now of a certain future pension payout that is only time-delayed? I mean my Mum also has a significant lump sum, but its likely to take more than a couple of weeks to get it which might be too late for the property in question; If someone also has the answer to this the sooner I know the better.

Good luck with your mortgages.

mrginge

Stupid question I know, but how much is this house?

Colto

lol no comment. It has actually been taken off Rightmove already. It was only advertised Friday afternoon, now Tuesday morning its marked as Sale Agreed. I'm going to assume theyre not talking about my interest.