Loan or gift to help buy house

Mollymoggy

I own a house that I am selling which has well over 100k equity in it. However to avoid losing my dream house my parents have kindly agreed to lend me a 100k I need for towards the deposit of the new house. The loan would only be repaid if and when I sell current house (it has a 50k mortgage on it but selling it for over 160k).
Their accountant advised wording and it is clear it is a loan, that they have no call on my new property but money repaid when current house sold.
Mortgage broker knew this.
Just had appointment with lawyer to draw up Exchange documents and was asked how I was paying deposit. I told her and she said mortgage company would only accept a letter saying it is a gift, that any type of loan is not acceptable. Santander is lender.
I am about to lose my dream home - can someone advise me if my lawyer is right.
Not that it matters but whole process has been awful and I have a very valid complaint about mortgage broker on other issues.
Thank you

ACG

There are lenders who will do what you want, I am not sure if Santander is one of them.

You do have a valid complaint against the broker, but save that until a later date as the priority is getting the Mortgage. Speak to the broker, they have by the sounds of it messed up but they may be able to get it back on track and make the best of a bad situation.