House deposit

Bobchallis

Hi,
-delete thread-

ACG

Who is the bank?

Most lenders insist that a gift has no strings. In this instance the gift will come with strings attached, ie you are able to live in the property.

Why would you not make the application in joint names?

But you are right about the equity being used as a deposit, so you would effectively be taking out a mortgage for 75% of the value.

Bobchallis

The bank is Halifax.
The reason the mortgage is not joint, is because I don't work, and when doing a joint application they wouldn't lend us enough to buy the property, but when my partner did it just on his own name we were able to lend enough to cover the remainder of the money after the deposit, we would have to give a 20% deposit, which my 1/4 would cover.

streetlovin

So the deposit will be your name, the house will be in your partner's name...you both are not tied by a marriage. I am not an expert but surely even if you can go through with a lender you will need to think oof an Exit Plan? What if you both break up - will you get your money back etc.

Bobchallis

We have been together for 20 years, we have 3 children and are planning on marrying this year.

streetlovin

Doesn't matter. My mum and dad split up after 20 years marriage with 4 kids.

Get started on your Exit plan... for your own security. That is probably what you family members are concerned about.

dk5294

I'd be careful with Halifax, my husband was solely buying a home, which until recently was going to be our family home and as I wasn't on the mortgage they were trying to claim I was a dependant and it significantly reduced our mortgage offer. I earn more than my husband, I just can't get a mortgage cause I was a pleb with money years ago and now I need to wait on this mistakes falling off.

ACG

I do not know Halifax stance but I would dour check if I were you. It can probably be done but not all lenders will be fans.

Dk5294 - have you spoke to a broker with experience in getting mortgages for plebs with money? A lot of the time bad credit can be overcome now. Much more now than just 12 months ago.

Bobchallis

We checked with the bank last week and she said yes, it was OK as long as the solicitors knew what was going on, they would deal with the transfer.
But I just wanted other people's views.

DK5294...yes I'm seen as a dependant, but the money they offered was still enough to cover the cost of the property that we would need.

dk5294

ACG I did, but as the deposit was coming from the LIFT scheme I wasn't able to be matched with a lender. unfortunately my circumstances have changed significantly and my husband will now be buying a home, so we can live apart.