Seller Concerned

HamiltP1

Hi, we wondered if anyone had experience or knowledge relating to a situation we find ourselves in...

We accepted an offer on our house, and were about to conclude on Wednesday of last week. Last minute, it was delayed as the buyers hadn’t gotten their full mortgage...why that was last minute news is a mystery!

Anyway, it is a husband and wife who are purchasing but the mortgage is in the wife’s name only. Husband has taken a personal loan for the shortfall and is gifting that to her. Their solicitor has written to Halifax to seek approval for this.

Does anyone have any experience of a situation similar to this so that we can get a sense of their likelihood of approval?

Thanks

MortgageMamma

It could be the personal loan thats causing the problem


Lenders don't like people borrowing deposits or any money for mortgage purposes. Ususally when a relative gifts money its money they already have, not a loan. Some lenders ask for evidence of where the gift has come from, the solicitor provides such information.


I couldn't comment on the likelihood that it will be approved, that very much depends upon Halifax's underwriters, and, if not approved by them whether the shortfall in funds and can be made up in some other way that they will approve

amnblog

Technically, what the OP has described is acceptable to Halifax.

Halifax will not allow the applicant to use a personal loan as part of the deposit they will however allow a gift from a partner who lives with you the applicant.

Experience tells me that this late action suggests the process was poorly handled from the start.

Thrugelmir

amnblog wrote: »

Experience tells me that this late action suggests the process was poorly handled from the start.

Or another case of people attempting to be clever. As if no one has attempted to hoodwink lenders before. When making single party applications to avoid declaring the circumstances of another.

HamiltP1

Thanks all for the replies.

The buyers solicitor, and our solicitor, both think it will work out. For the reason the personal loan is in the husbands name and he is not named on the mortgage. Their solicitor has asked the lender for permission. As I say, both solicitors suggest everything will be ok.

And agreed, it’s been poorly handled by the buyers, their solicitor and their broker. I have no idea of the buyers circumstances, other than they are complicated!

Thrugelmir

HamiltP1 wrote: »

Their solicitor has asked the lender for permission.

The solicitor works for the lender as well as the buyers. They'll report back to the lender the source of the deposit for the property. Any decision is the lenders. As they are the ones advancing the funds.

HamiltP1

Thanks Thrugelmir.

I appreciate people’s views and understand it is over to the lender. The buyers solicitor has referred it; I was curious if anyone with experience had come across this situation. What I’m hearing from some replies is that this isn’t outside of Halifax rules so may very well be ok.

shirlgirl2004

I have done exactly this recently, actually more complicated but essentially OH said he was gifting me the deposit and lender was happy with that.

HamiltP1

Thanks Shirgirl2004. That does put my mind at ease. It was the fact that it was from a personal loan that I was concerned, but first hand experience of it being approved is better than opinion!

Appreciate it.