Gifted deposit from parent's partner

CantCopeWontCope

We are receiving around 40% if our deposit from my parent's partner and have stated, on advice from our mortgage broker, that they can be titled as stepfather.

We have the gifted lender signed and relationship is stated as stepfather. Application has been sent to HSBC. Everything fine so far but wondering if we will run into any issues when the solicitor carries out their checks since they are unmarried? 

Mark_d

I suspect the issue relates to inheritance tax when this chap passes away, rather than anything of significance to the mortgage.  I suspect that there might be tax liability as this chap is not married to your parent...but I would seek advice from an expert in inheritance tax

Hoenir

Mortgage broker should be aware/checked that the deposit is from an acceptable person. 

Solicitor will only be interested in the source of the funds not the relationship to either of you. 

MWT

Mark_d said:

I suspect the issue relates to inheritance tax when this chap passes away, rather than anything of significance to the mortgage.  I suspect that there might be tax liability as this chap is not married to your parent...but I would seek advice from an expert in inheritance tax

There is no specific IHT issue related to the gift that would be any different if they were actually married.

Some lenders are more picky about the relationship though, NatWest for example do not care if it is family or just a friend, HSBC do have a list (which includes step-father).