Halifax gifted deposit rules

[Deleted User]

Halifax dont care. Some lenders care and will ask the reason but Halifax dont care.

Thrugelmir

Bozunited94 said:

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. 

 That's at the discretion of the lender and the internal criteria they set for acceptable sources of deposit. The solicitor is going to require proof of the source of the £25k to cover money laundering aspects. This information will be relayed back to the lender. 

Underwriters have noses like bloodhounds. Spend long enough doing something and there's a second nature instinct for when something is amiss. 

Bozunited94

Thrugelmir said:

Bozunited94 said:

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. 

 That's at the discretion of the lender and the internal criteria they set for acceptable sources of deposit. The solicitor is going to require proof of the source of the £25k to cover money laundering aspects. This information will be relayed back to the lender. 

Underwriters have noses like bloodhounds. Spend long enough doing something and there's a second nature instinct for when something is amiss. 

Thats all sorted. I'm using the same solicitors for the purchase as my partner is to sell her house so the money laundering checks should be absolutely fine.