Mortgage Meeting coming up equity based gifted deposit advice

DebtClearer

Hi,

Me and my girlfriend are soon to attend a mortgage meeting with Yorkshire BS. We have been told that we meet the lending criteria and they are aware we would like to obtain a 95% LTV mortgage with the deposit coming from girlfriend's family in the form of gifted 5% equity when they sell us the house.

Please can anyone advise how the sellers (gf's family) can write a letter to this effect so we can take it to the meeting with us? We are unsure how to explain the gifted equity process.

ap1985

Have a look at the following website:


https://www.amortgagenow.co.uk/mortgage-deposit-gift-letter

kingstreet

You don't use a gifted cash deposit letter for a gifted equity/concessionary case and I suspect amn is going to be giving you a stiff talking to, ap1985.

If you have to explain the gifted equity concept to a lender, I suspect the lender doesn't accept it, so get in touch with YBS, ask them if they accept concessionary purchases from relatives and if they don't get yourselves a decent independent broker.

You'll save yourselves hours of meaningless drivel in their "advice" meetings...

ap1985

kingstreet wrote: »

You don't use a gifted cash deposit letter for a gifted equity/concessionary case and I suspect amn is going to be giving you a stiff talking to, ap1985.

If you have to explain the gifted equity concept to a lender, I suspect the lender doesn't accept it, so get in touch with YBS, ask them if they accept concessionary purchases from relatives and if they don't get yourselves a decent independent broker.

You'll save yourselves hours of meaningless drivel in their "advice" meetings...

Confused, should I not have posted that website link?

kingstreet

Like I said, that's for a cash gift, this is gifted equity/concessionary purchase from a relative. It's totally different.

I guess amn will post and tell you if he is happy for a link to his website to be posted on here.

DebtClearer

kingstreet wrote: »

Like I said, that's for a cash gift, this is gifted equity/concessionary purchase from a relative. It's totally different.

I guess amn will post and tell you if he is happy for a link to his website to be posted on here.

YBS do accept this method of gifted deposit.

What I am saying is that the seller will need to write a letter to YBS so I can take it to them in a weeks time.

We are unsure what it needs to say and YBS call centre team have been unhelpful other than checking with underwriters that it is allowed.

Could it say "We can confirm that upon the sale of address 1 to mr x and miss y for the value of £160k we will make 5% of the sale price available for them to use as a deposit so they can obtain a mortgage for £152k"???

kingstreet

Who told you a letter is required?

As mentioned twice previously, it is not normal for a gifted deposit letter to be required for a concessionary purchase/gifted equity case.

If someone is telling you a letter is required, it would be helpful if they told you what the letter should contain as well...