A Tricky One

Matt_L

My GF has decided on a new build local to where she currently lives, she is a first time buyer. She will be applying for the HTB Equity Loan but has already passed the affordability checks done by Metro Finance and has a MIP from Halifax.

She has reserved a plot, but not left a deposit as the HTB application for the build hasn't come on line yet so they allowed her to reserve until it does,,, The price for the house is £155,000, she has a deposit of £24,000, with £31,000 coming from the HTB leaving a mortgage of £100,000.

The tricky part is where the deposit comes from. Its perfectly legal but this is a break down. £13,000 from her farther as a gift which she will get a statement for with supporting bank statements. £5,000 she has saved from her monthly wage which can clearly be seen on her bank statements.

However i started work in July of this year and decided to have my wage put directly into her account to help her build a deposit. Without going into to much detail about my personal life I have no credit history, i haven't even existed for the last 10 years and this is my first job where I'm paying taxes and ni.. So £6000 of the deposit has gone directly into her account and can be seen on her bank statements, thats my weekly wage, payed into her account on a weekly basis, on her statements it shows the amount, the company name i work for and my name. As of Thursday my wage will go into my own account which i opened last weekend with Halifax. So no more of my wage will go into her account..

Now i don't want my name to harm her when she goes for full application and i don't want my name on the mortgage, i will never have any ambition to own any part of the house.
In fact i start a new job in Feb which requires me to work away so might not even move into the house with her..

So is there a way of explaining the £6000 from me without it hurting her full mortgage application chances??

Thank you...

csgohan4

so generous your gifting her 6k, So your not expecting it back are you???

Matt_L

csgohan4 wrote: »

so generous your gifting her 6k, So your not expecting it back are you???

Definitely wouldn't expect it back in anyway:)

Matt_L

csgohan4 wrote: »

so generous your gifting her 6k, So your not expecting it back are you???

The question is would the underwriters not want a complete and full explanation as to why my wage went into her account in the first place?? Which could then damage her??

amnblog

Yes, underwriters will ask why she has xxx going into her account from you every month.

Has the mortgage broker not seen this and questioned it?

Matt_L

amnblog wrote: »

Yes, underwriters will ask why she has xxx going into her account from you every month.

Has the mortgage broker not seen this and questioned it?

She is currently in the process of choosing a Broker, she is finding it difficult to find one...

Im of the understanding that i couldn't say the money was a gift from me as I'm not family, or i could say but it would raise eyebrows....

amnblog

She obtained amortgage offer in principle without anyone looking at her bank statements?

Matt_L

amnblog wrote: »

She obtained amortgage offer in principle without anyone looking at her bank statements?

She has her MIP from Halifax the same bank she banks with and has done since 16, the mortgage advisor there went through here wage slips and i presume bank statements but asked no questions on where the deposit money came from..

She has 2 ISAs a HTB one with about £2600 in a standard ISA with about £4,500 in the rest is in her current account which is roughly £17,000.

She also showed her last 3 bank statements when she went for the Affordability check with Metro Finance but when you look at her last 3 bank statements the money is already in her account and you can see the amount building with each month...

Matt_L

Her father gave her £10,000 earlier in the year (March i think) but she used that to pay off credit cards and overdrafts, the remaining was left in her current account, the other he gave her £3000 he put in a couple of weeks ago. My wage was going into her account from July and last Thursday was the last from me....

kingstreet

There are much better products for HTB Equity Loan than what Halifax is offering.

The criteria would also be better away from Halifax.

Get a decent broker working on this ASAP.

Matt_L

kingstreet wrote: »

There are much better products for HTB Equity Loan than what Halifax is offering.

The criteria would also be better away from Halifax.

Get a decent broker working on this ASAP.

She will be talking to Metro Finance tomorrow. She has met with them once and had a very good experience. She had her affordability check done with them as they were acting on behalf of the Builders to check potential customers finances. Mathew the advisor she spoke to and did her checks said that because she was doing HTB the check were standard government checks and a little harsher than that of the normal lenders.

The house she has reserved are being built by a housing association group aimed at being more affordable, they're not a private company like Wimpey...