Gift deposit from partner through loan

katinthehat83

Hi,

I am currently looking at Share to Buy properties in my name only as my partner of 13 years is named in a property overseas and is not eligible in the scheme.
As we are not married and it would be only me named on the mortgage, would it be possible for him to take out a loan of 10k in his name and gift this to me so I can use towards the deposit? The idea is that if we see a property immediately available, we are able to put down the deposit and then he can payback the loan from his account and I can be paying the mortgage from my account.

lee111s

No.

You will be asked to provide evidence as the source of funds.

glentoran99

lee111s wrote: »

No.

You will be asked to provide evidence as the source of funds.

source of funds
Gift


Why would that be a problem?

katinthehat83

Thank you for the quick reply. Would a paper signed from him that he gifts me this amount not be enough for the bank as he would not be on the deeds?

NOVAMET21

Not sure but when I got £5000 from my mum as a gift, I was asked to provide my mum's bank statement for savings account and the classic account to prove that she had that money in her account. They probably check the source as well whether the money had been in savings account or been borrowed.

csgohan4

glentoran99 wrote: »

source of funds
Gift


Why would that be a problem?

It would be a problem as the source of funds is a loan from partner, not money that had been sitting around for months from own savings.

glentoran99

Ive just got a mortgage with the deposit being a gift from MIL, haven't had to prove were she got it from or anything?

lee111s

glentoran99 wrote: »

Ive just got a mortgage with the deposit being a gift from MIL, haven't had to prove were she got it from or anything?

Depends on the lender and solicitor. It's not uncommon for gifters to have to provide bank statements to show where the funds have came from.

Thrugelmir

glentoran99 wrote: »

Ive just got a mortgage with the deposit being a gift from MIL, haven't had to prove were she got it from or anything?

I assume that you've a partner. Which makes your MIL a related party. A different scenario.

A gift from a connected party that isn't named on the application would be questioned. Not least that it gives the party a financial interest in the property.

Colum3

We had exactly this scenario, 10k loan from my partner (unmarried) gifted to me to get the mortgage. I can't remember specifically what we had to provide but I suggest if you can, get the loan then wait a month so the payment in doesn't show up just the payment out to you.

If they ask for bank statements from your partner I can't remember. Mortgage was with Nationwide.

glentoran99

Thrugelmir wrote: »

I assume that you've a partner. Which makes your MIL a related party. A different scenario.

A gift from a connected party that isn't named on the application would be questioned. Not least that it gives the party a financial interest in the property.

But nothing was ever checked, took our word for it, never even gave her name