Need some reassurance

Ulti · 3 February 2017 at 7:21PM

Thanks for yet more food for thought. I don't think I or we have told our broker no. Sorry if I'm being thick here but what are the complications here? Is there something I can read up on as it seems like I've just entered a really difficult situation?

Avante_2 · 3 February 2017 at 10:24PM

Hi Ulti,
I work in Credit Risk for a mortgage company. The transaction you have described highlights multiple red flags.

1) £135,000 gift is not really a gift it will be seen as funding the purchase, even if it is paid into your bank account and then to the mortgage lender they will perform source of fund checks as per anti money laundering and question where it came from. Ultimately it will still be your parents money in this transaction.

2) As others have mentioned there are issues with mutilple occupants who can all claim a vested interest in the property regardless of whether or not they are on the mortgage, if they live there and contribute in some way, they can claim.

3) Buying and running a 2nd house with two mortgages is not an easy task are you sure you want to put yourself in so much debt?

My recommendation would be take a lower "gift" declare it to your broker and get your own mortgage. Of course that means your family would still be renting so may not be an option.

Make sure you are honest upfront about everything before you apply or it will come back to bite you!

All the best