Halifax gifted deposit rules

Bozunited94

Deleted_User said:

No we just had to delay by a few days. To give time for the money from the sale to hit the wifes account and then to be sent to the husband who then sent it to the solicitors.
The difficulty was with the solicitors policy being that all gifted deposit funds have to be sent to them from the buyers account.   It might be that your solicitor has a different policy. 

Thanks thats brilliant news. Im hoping that it's all possible now. We had a broker that told us she couldn't gift me the deposit and live with me without being on the mortgage and that's not a possibility due to how terrible her credit is. Did you have to explain. Why you wouldnt be on the mortgage?

[Deleted User]

Bozunited94 said:

Deleted_User said:

No we just had to delay by a few days. To give time for the money from the sale to hit the wifes account and then to be sent to the husband who then sent it to the solicitors.
The difficulty was with the solicitors policy being that all gifted deposit funds have to be sent to them from the buyers account.   It might be that your solicitor has a different policy. 

Thanks thats brilliant news. Im hoping that it's all possible now. We had a broker that told us she couldn't gift me the deposit and live with me without being on the mortgage and that's not a possibility due to how terrible her credit is. Did you have to explain. Why you wouldnt be on the mortgage?

not with Halifax.  Its in their criteria that they accept it so no issues.  Solicitor will likely report the source of the gift and the fact she is living there and the lender will reply with confirmation they can proceed

Thrugelmir

Bozunited94 said:

Thrugelmir said:

Is the Halifax aware that your partner will gifting a sizable sum towards the deposit. What's the reason behind structuring the transaction this way? As in certain circumstances leaves the mortgage lender exposed and at risk. 

Yes I've told them that she will be gifting 25k towards the deposit due to her having adverse credit and that she will be living with me. They seem to think this is absolutely fine. Just worried the underwritters will say different. 

Doesn't matter what "they" think.  Underwriters are the ones empowered to make decisions and hold the cheque book.  

Bozunited94

Thrugelmir said:

Bozunited94 said:

Thrugelmir said:

Is the Halifax aware that your partner will gifting a sizable sum towards the deposit. What's the reason behind structuring the transaction this way? As in certain circumstances leaves the mortgage lender exposed and at risk. 

Yes I've told them that she will be gifting 25k towards the deposit due to her having adverse credit and that she will be living with me. They seem to think this is absolutely fine. Just worried the underwritters will say different. 

Doesn't matter what "they" think.  Underwriters are the ones empowered to make decisions and hold the cheque book.  

Yeah thats what concerns me. But if it's in there policy what reason would an underwritter have to refuse the application?,

[Deleted User]

Ive never had a refusal with Halifax on deposit from partner living in property. 

I wouldn't worry if I were you

Thrugelmir

Bozunited94 said:

Thrugelmir said:

Bozunited94 said:

Thrugelmir said:

Is the Halifax aware that your partner will gifting a sizable sum towards the deposit. What's the reason behind structuring the transaction this way? As in certain circumstances leaves the mortgage lender exposed and at risk. 

Yes I've told them that she will be gifting 25k towards the deposit due to her having adverse credit and that she will be living with me. They seem to think this is absolutely fine. Just worried the underwritters will say different. 

Doesn't matter what "they" think.  Underwriters are the ones empowered to make decisions and hold the cheque book.  

Yeah thats what concerns me. But if it's in there policy what reason would an underwritter have to refuse the application?,

Broadly speaking the Insolvency Acts. Ability of creditors to reverse transactions to recover their money. The other is that the money can potentially create a legal financial interest in the property. Making repossession more difficult. Simply signing a piece of paper doesn't mean that people necessarily understand the full implications. If no independent advice has been sought. 

Bozunited94

Deleted_User said:

Ive never had a refusal with Halifax on deposit from partner living in property. 

I wouldn't worry if I were you

How many have have you done? And under what circumstances. Thank you you've really helped me to relax about it!!

Bozunited94

Thrugelmir said:

Bozunited94 said:

Thrugelmir said:

Bozunited94 said:

Thrugelmir said:

Is the Halifax aware that your partner will gifting a sizable sum towards the deposit. What's the reason behind structuring the transaction this way? As in certain circumstances leaves the mortgage lender exposed and at risk. 

Yes I've told them that she will be gifting 25k towards the deposit due to her having adverse credit and that she will be living with me. They seem to think this is absolutely fine. Just worried the underwritters will say different. 

Doesn't matter what "they" think.  Underwriters are the ones empowered to make decisions and hold the cheque book.  

Yeah thats what concerns me. But if it's in there policy what reason would an underwritter have to refuse the application?,

Broadly speaking the Insolvency Acts. Ability of creditors to reverse transactions to recover their money. The other is that the money can potentially create a legal financial interest in the property. Making repossession more difficult. Simply signing a piece of paper doesn't mean that people necessarily understand the full implications. If no independent advice has been sought. 

And how would we go about getting around that? Other then signing the paperwork how can you prove that it's genuine? Surely if they were so concerned they wouldn't let gifted partners live in the property. 

[Deleted User]

Bozunited94 said:

Deleted_User said:

Ive never had a refusal with Halifax on deposit from partner living in property. 

I wouldn't worry if I were you

How many have have you done? And under what circumstances. Thank you you've really helped me to relax about it!!

Lots? That's probably the best description.   Got one going through at moment from wife with bad credit, had 1 complete last month for same reasons. Another in my pipeline with natwest for same reason

Sometimes halifax is only lender available due to criteria and they really suck with 2 applicants with 1 income.  Not uncommon to only have 1 on mortgage but deposit come from the other as they cant be on mortgage.

My own mortgage was with Halifax and my wife gave the deposit. She wasn't on it as she was a student and affordability was impacted too much

Its really not that uncommon to see. Most lenders dont allow it but the ones that do have made that decision and dont tend to ask questions afterwards (with exception of narionwide who allow it unless its due to bad credit) 

Bozunited94

Deleted_User said:

Bozunited94 said:

Deleted_User said:

Ive never had a refusal with Halifax on deposit from partner living in property. 

I wouldn't worry if I were you

How many have have you done? And under what circumstances. Thank you you've really helped me to relax about it!!

Lots? That's probably the best description.   Got one going through at moment from wife with bad credit, had 1 complete last month for same reasons. Another in my pipeline with natwest for same reason

Sometimes halifax is only lender available due to criteria and they really suck with 2 applicants with 1 income.  Not uncommon to only have 1 on mortgage but deposit come from the other as they cant be on mortgage.

My own mortgage was with Halifax and my wife gave the deposit. She wasn't on it as she was a student and affordability was impacted too much

Its really not that uncommon to see. Most lenders dont allow it but the ones that do have made that decision and dont tend to ask questions afterwards (with exception of narionwide who allow it unless its due to bad credit) 

Question is do you have to disclose the reason. Why she wouldn't be on it and if so is it best just to be honest or are some reasons better then others?