Gifted deposit from mum but now want to sell/move out

househappy2025

I was gifted £125,000 from my mum and used this as deposit for mortgage in my name and we live together. The remaining mortgaged owed now is approx £145,000 as have already remortgaged, done up the house and now worth about £360,000.
 I now want to move out and need advice. Would I be able to move the mortgage with me if we sold? I would be moving to a smaller property and less in price 
or is it best to sell the property pay off the mortgage and seperate?

Emmia

househappy2025 said:

I was gifted £125,000 from my mum and used this as deposit for mortgage in my name and we live together. The remaining mortgaged owed now is approx £145,000 as have already remortgaged, done up the house and now worth about £360,000.
 I now want to move out and need advice. Would I be able to move the mortgage with me if we sold? I would be moving to a smaller property and less in price 
or is it best to sell the property pay off the mortgage and seperate?

Is this in relation to your mum living with you, or a partner / spouse?

Does your mortgage allow porting?

Hoenir

You should be able to apply to port the mortgage to a lower priced property. 

househappy2025

Yes with NatWest and they do it so I can enquire with them

MWT

househappy2025 said:

Yes with NatWest and they do it so I can enquire with them

Keep in mind that you still have to be able to meet the affordability criteria for your new mortgage, it is just the terms of old mortgage that are ported to the new mortgage.

Have you agreed with your mother what the split of the proceeds would be given she originally gifted the deposit?

born_again

househappy2025 said:

I was gifted £125,000 from my mum and used this as deposit for mortgage in my name and we live together. The remaining mortgaged owed now is approx £145,000 as have already remortgaged, done up the house and now worth about £360,000.
 I now want to move out and need advice. Would I be able to move the mortgage with me if we sold? I would be moving to a smaller property and less in price 
or is it best to sell the property pay off the mortgage and seperate?

Are you saying you live with your mum?
So if you do & want to move out, where is your mum going to be living? 

silvercar

MWT said:

househappy2025 said:

Yes with NatWest and they do it so I can enquire with them

Keep in mind that you still have to be able to meet the affordability criteria for your new mortgage, it is just the terms of old mortgage that are ported to the new mortgage.

Have you agreed with your mother what the split of the proceeds would be given she originally gifted the deposit?

If she gifted the deposit, and signed something with the solicitor, that it was a gift, why would anything be given back. It isn't normal to return gifts.

MWT

silvercar said:

MWT said:

househappy2025 said:

Yes with NatWest and they do it so I can enquire with them

Keep in mind that you still have to be able to meet the affordability criteria for your new mortgage, it is just the terms of old mortgage that are ported to the new mortgage.

Have you agreed with your mother what the split of the proceeds would be given she originally gifted the deposit?

If she gifted the deposit, and signed something with the solicitor, that it was a gift, why would anything be given back. It isn't normal to return gifts.

In this case it was a gift with reservation, which was the expectation of continued right to occupy it seems...

So it seems like a fair question...

Hoenir

MWT said:

silvercar said:

MWT said:

househappy2025 said:

Yes with NatWest and they do it so I can enquire with them

Keep in mind that you still have to be able to meet the affordability criteria for your new mortgage, it is just the terms of old mortgage that are ported to the new mortgage.

Have you agreed with your mother what the split of the proceeds would be given she originally gifted the deposit?

If she gifted the deposit, and signed something with the solicitor, that it was a gift, why would anything be given back. It isn't normal to return gifts.

In this case it was a gift with reservation, which was the expectation of continued right to occupy it seems...

So it seems like a fair question...

Any non mortgage parties occupying the property should have completed "a declaration of no interest in property".  As it impinges on the lender's ability to obtain possession in the event of default. 

MWT

Hoenir said:

MWT said:

silvercar said:

MWT said:

househappy2025 said:

Yes with NatWest and they do it so I can enquire with them

Keep in mind that you still have to be able to meet the affordability criteria for your new mortgage, it is just the terms of old mortgage that are ported to the new mortgage.

Have you agreed with your mother what the split of the proceeds would be given she originally gifted the deposit?

If she gifted the deposit, and signed something with the solicitor, that it was a gift, why would anything be given back. It isn't normal to return gifts.

In this case it was a gift with reservation, which was the expectation of continued right to occupy it seems...

So it seems like a fair question...

Any non mortgage parties occupying the property should have completed "a declaration of no interest in property".  As it impinges on the lender's ability to obtain possession in the event of default. 

... of course, but as we frequently tell people on here, be careful when doing this sort of thing as you can find yourself homeless if the party you have moved in with changes their mind later and sells...

The mother in this case may well have the finances to just forget all about this venture and go off and buy her own place, or she may be shocked at this change of events and deeply regret ever doing it as she is now without the resources she needs, we just don't know which case applies, hence asking the question...

BikingBud

MWT said:

Hoenir said:

MWT said:

silvercar said:

MWT said:

househappy2025 said:

Yes with NatWest and they do it so I can enquire with them

Keep in mind that you still have to be able to meet the affordability criteria for your new mortgage, it is just the terms of old mortgage that are ported to the new mortgage.

Have you agreed with your mother what the split of the proceeds would be given she originally gifted the deposit?

If she gifted the deposit, and signed something with the solicitor, that it was a gift, why would anything be given back. It isn't normal to return gifts.

In this case it was a gift with reservation, which was the expectation of continued right to occupy it seems...

So it seems like a fair question...

Any non mortgage parties occupying the property should have completed "a declaration of no interest in property".  As it impinges on the lender's ability to obtain possession in the event of default. 

... of course, but as we frequently tell people on here, be careful when doing this sort of thing as you can find yourself homeless if the party you have moved in with changes their mind later and sells...

The mother in this case may well have the finances to just forget all about this venture and go off and buy her own place, or she may be shocked at this change of events and deeply regret ever doing it as she is now without the resources she needs, we just don't know which case applies, hence asking the question...

I don't see anywhere in the OP's query that there is any intention of turfing the mother out.

I felt it was a demonstration of a somewhat naive understanding of how concurrent sale and purchase work. Taking the £145k mortgage remaining from a property now considered to be worth over £300k and transplanting that to another lower priced house.

Or settling the outstanding £145k mortgage from the sale value and starting with a new mortgage for the next purchase.

In which case it seems to require understanding of the terms of the current mortgage, is it fixed rate and will it accrue early resettlement charges or will the lender allow transfer of the current deal to another property, potentially with other charges?

I would suggest therefore as although we know the lender we do not know the terms of the mortgage or anything about the properties and that OP goes back to their broker or to their lender and asks the same question. Which appears to be in progress.