Htb loan and gifted deposit

kemp596

Hi can anyone help, when have reserved a new build house due to exchange contracts end of Jan and complete in June, we are using the help to buy equity loan, we are putting in a 5% deposit from mine and my girlfriends savings my Auntie is also giving us money for the house which she is wanting to put a charge on the house for should anything happen her money is protected... I explained all this to the mortgage advisor who said the Third charge would not be a problem and got my auntie to fill out the nationwide gifted deposit form which does state if the gifted deposit is subject to a charge then the only condition is the full amount be repaid and no interest is charged or repayments to be made which is correct. I have had a call from the solicitor today to say neither the lender or the help to buy will allow the third charge on the property and that we need to put the money in trust... the nationwide gifted deposit form says it allows the charge but does anyone know if the help to buy trust would allow the extra charge as the mortgage advisor said it would be fine but the solicitor is saying different ? Sorry for the long post but any help would be great thanks.

kingstreet

The HTB Loan requires a second charge and no other charge is permitted.

Pixie5740

If auntie is giving you a gift why does she need a charge on the property to protect "her" money? If she's gifted it to you then it's your money.

I suppose she could gift it to her niece and you and the niece get a Declaration of Trust drawn up. Then it would be the niece's money not the aunt's and therefore no need for a 3rd charge.