Gifted deposit and mortgage offer

AliceBanned

Hi
I applied through a broker and was accepted for a mortgage of £185k  (it is top of my budget and I have outstanding credit card debt, also borrowing into post retirement age so needed to use a broker). 
I have to repay my credit card balance before completion which I can do, but for the fees I am using a £3k gifted deposit and some money from my salary between now and then as it will be December or January.  Looking at the figures yesterday my redemption on old mortgage doesn't have a fee but I hadn't factored in the sub account when I applied as this wasn't on my online statement, (well I didn't see it as I hadn't noticed the tab with it in). I've emailed the broker to let him know as I will have £700 less equity when I sell due to this sub account.
Family can gift me more or lend me depending on what is feasible with the lender - I don't think they want me to have any borrowing at all and that is the condition of the mortgage ie it is in writing that i should repay the current credit card balance. .However the broker said it is 'revolving credit' so if the card balances aren't 0 it won't matter. My solicitor disagrees and so do I. What should I do - formally raise the gifted deposit to £4000 but what if the lender is unhappy with this change? Or hope the exchange and completion is slow enough that I can find the extra money? Thanks. I am thinking if it really is difficult I should pull out but it is a good deal on the flat. I am moving out of shared ownership which will be better for my future equity.

mortgagetakingages

I don't see why increasing the gifted deposit will hurt

FTB_society

I do have a similar question : is it okay to use less a gifted deposit than the amount I declared in mortgage application.  my question is,,,  if does change of source of deposit after mortgage offer matter ? for example, in application (Saving 10k, and gifted deposit 10k),  but actually I pay with (saving 12k, and gifted deposit 8k) ?

mortgagetakingages

FTB_society said:

I do have a similar question : is it okay to use less a gifted deposit than the amount I declared in mortgage application.  my question is,,,  if does change of source of deposit after mortgage offer matter ? for example, in application (Saving 10k, and gifted deposit 10k),  but actually I pay with (saving 12k, and gifted deposit 8k) ?

So long as you evidence the source and satisfy your solicitor i don't see why it should be an issue but check with your lender to be sure

AliceBanned

Thanks mortgagetakingages. I feel quite a bit of anxiety as I am being told different things. ie mortgage broker attitude is basically 'don't worry' when for me there might be consequences if I mess up. I spoke to my vendors today and they want to move early December and think they will be ready, even though they have only just had an offer accepted on a house. 
My mortgage broker hasn't responded to my email about the increase the gifted deposit and I still feel uncomfortable about this comments on revolving credit, when in writing the lender has said all credit cards need to be paid off. If there is eg £500 outstanding what will happen? I may have to negotiate a later completion to early January and then it would be doable, but the whole chain seems to want to move before Christmas!! So I feel I'm potentially going to mess up and hold everything up. As long as I don't sign to say I am ready by x date, would it be negotiable? my solicitor is so slow, I've no idea whether the buyer wants me to do a lease extension, there are so many things outstanding. I've now found that I have an additional £600 in fees to find for the housing association by completion.

All gets a bit much and I wonder whether to pull out but sell my place, though it is a flat I do want at a good price. 

AliceBanned

ps there is a special condition on the mortgage offer: 'the following commitments will be repaid on or before completion of this loan..they may not be transferred to any other lender'.So close to exchange does the lender review my case? 
I think the margins are so tight that I need to wait until early January but the chain won't like that - not sure what to do? Thanks

davidmcn

"On or before completion" - you can do it simultaneously with completion, so there would be no point in them reviewing it before completion because you wouldn't have needed to have done it by then.

AliceBanned

Thanks so my solicitor would need to check at exchange that it is feasible, and if so not exchange at that point? So I would have to hope, if nearer the time it isn't feasible until a January completion, that the chain will wait..it's awkward timing as everyone seems obsessed with moving in by Christmas but that's not my goal, I can't afford this preference. Who knows, as my solicitor is saying searches are taking twice as long as usual. I don't want them all to turn to me mid November and expect something I can't achieve.

davidmcn

AliceBanned said:

Thanks so my solicitor would need to check at exchange that it is feasible, and if so not exchange at that point?

Only if it's part of your solicitor's instructions from the lender that they need to check on behalf of the lender.

Thrugelmir

AliceBanned said:

 even though they have only just had an offer accepted on a house. 

Such early days. Little point in even considering exchange /completion dates yet. With so many different aspects that need to come together having pointless discussions does ones blood pressure no good.  In a few weeks time the picture will become clearer. 

AliceBanned

davidmcn said:

AliceBanned said:

Thanks so my solicitor would need to check at exchange that it is feasible, and if so not exchange at that point?

Only if it's part of your solicitor's instructions from the lender that they need to check on behalf of the lender.

Mortgage broker is being so blase, told me 'they don't check'. !! I can't take that risk but it is a confusing one because as he says, it is 'revolving credit' so the lender obviously knows that the day after completion the borrowing could go back up. I think it's a lot of pressure to put me under when I want to be debt-free anyway! Just takes time.