Gifted Deposits

Aliceglass

Hi all

I have applied for a mortgage alone with my current partner providing a large donated gifted deposit in order to purchase the house we love.

The unconditional donation form has been submitted and accepted by the mortgage provider, however we have recently completed a basic declaration form with my solicitor outlining that it is a gift with no implied trust, but that the gift amount will be repayed upon sale of the property. He was looking for some kind of insurance which seems fair.

In my eyes this is now an unsecured loan and could invalidate my mortgage agreement or worse still be seen as mortgage fraud.

Am i worrying to much about losing our dream home or do i have to inform the mortgage provider?

Many thanks

Alice

davidmcn

Your solicitor (assuming they also act for your lender) ought to be disclosing to the lender that the "gift" is actually a loan, so this is going to be a problem. Have you discussed the gifted deposit with your solicitor?

kingstreet

Some lenders can handle the "gift" repayable on sale and some can't. Let's just hope you chose one which can.

Some lenders won't permit someone living in the property but not party to the purchase nor the mortgage contributing to the deposit.

This needed a deal of advance planning. As that didn't take place you're going to have to rely on complete luck.

Aliceglass

Thanks everyone.

Nationwides general terms state:

'There must be no conditions attached to the gift. The only exception is where the gift is provided by a family member and is subject to a second charge or family trust arrangement. The only condition is for the repayment of the charge upon sale of the property'

I think i had better tell them everything and hope for the best.

Thrugelmir

I assume that your partner intends residing in the property with you. Which adds potential complications in the eyes of the lender. Why isn't your partner being named on the mortgage application. As doesn't appear to be monetary issues.