Mortgage and gifted deposit

Arthur99

Hi All,

Reaching out for some advice. My partner and I are looking to purchase our first house. My partner has a deposit that she has been gifted BUT can't go on the mortgage as with her being a mature student it reduces our borrowing meaning no house is affordable. Lenders see her as financially​ dependant on me.

I don't have any deposit as we were going to use what my partner has been gifted.

So, even though she can gift me the deposit and not be on the mortgage/deeds (which we know has its risks), is there anyway official way she can protect that money. So if we split and sell the property, she would take the deposit amount plus/minus market fluctuations etc.

I appreciate that's not technically a gift but just wondering if anything can be done?

Complicated one i fear.

Thanks in advance.

The_Real_Cheddar_Bob

might need someone else to answer in more detail, but be careful of mortgage fraud. I assume you are not married?

Some lenders will consider a loan from a partner/family member, however they are unlikely to allow for them to have a charge over the property for the amount on loan.

I guess its a risk you will both have to take. My wife gave me our deposit. I cant speak for her but i haven't one thought about the future in a negative context. If money matters that much to her, is this the right person?

get married.

Imelda

Some lenders - HSBC? - offer indirect mortgages which would allow you both to be on the deeds and just you on the mortgage.

I would also suggest you have a declaration of trust and independent legal advice for your partner.

itchyfeet123

No helpful advice from me either, but

rjwr wrote: »

I guess its a risk you will both have to take. My wife gave me our deposit. I cant speak for her but i haven't one thought about the future in a negative context. If money matters that much to her, is this the right person?

The only one taking the risk was your wife/is the OP's partner. I don't think it's fair to dismiss someone as being too concerned about money when the amount we're talking about is enough to be the deposit for a house. One partner gets an appreciating asset, the other loses their life savings.

Relationships, including marriages, end all the time. It's sensible to plan in advance what will happen in that eventuality, before you hate each other and think the ex is the devil.

davidmcn

Arthur99 wrote: »

I don't have any deposit as we were going to use what my partner has been gifted.

That doesn't really explain why you don't have a deposit.

In answer to your question though, a gift has to have no strings attached. Otherwise it makes Christmas less fun.

That doesn't mean you couldn't choose to give your partner money if you separated. But she'd have to trust you do that.

Pixie5740

Arthur99 wrote: »

Hi All,

Reaching out for some advice. My partner and I are looking to purchase our first house. My partner has a deposit that she has been gifted BUT can't go on the mortgage as with her being a mature student it reduces our borrowing meaning no house is affordable. Lenders see her as financially​ dependant on me.

I don't have any deposit as we were going to use what my partner has been gifted.

So, even though she can gift me the deposit and not be on the mortgage/deeds (which we know has its risks), is there anyway official way she can protect that money. So if we split and sell the property, she would take the deposit amount plus/minus market fluctuations etc.

I appreciate that's not technically a gift but just wondering if anything can be done?

Complicated one i fear.

Thanks in advance.

Have you been to see a mortgage broker yet? A lot of lenders will have an issue with the gifted deposit coming from someone who will be living in the property. Those that will do it will probably ask your OH to sign a document waiving any rights to the property. Do not attempt to DIY this and make sure you both, particularly your OH, takes advice.