Gifted Deposit from partner

theyiddo

Hi all,

Apols if this has been asked an answered before.

I'm currently buying a house with a gifted deposit from my partner - which will be received upon the sale of their house. The house/mortgage will only be in my name and not theirs, and they will be living with me in the house.

The mortgage provider requires a letter to be completed stating the nature of the gifted deposit.
Which of the below statements would cause the mortgage provider to reduce the size of mortgage they would offer me:

- This gift is given freely, no interest will be charged and no repayment is required

 - There will not be any interest retained in the property being purchased

 - This gift will be secured by a second legal charge repayable on the sale of the property if required

 - This is a loan and it will be expected to be repaid upon the sale of the property with a second legal charge to protect it although no monthly payment will be expected

 - I/we will (Continue to) reside in the property once the mortgage completes

Exodi

Exactly what is it you're trying to do because this reads as if you're trying to deceive a lender into thinking this is a gifted deposit without reservation when it  isn't.

I don't expect people on this forum will assist you tricking the lender. It's also potentially disastrous to your partner, as they may find out if you break up and you then claim "It was a gift, as was stated and signed."

They may have suspicions too as I thought they'd typically only require you to complete a gifted deposit declaration, e.g: https://www.nationwide-intermediary.co.uk/-/media/nfi/documents/p2505-mortgage-gifted-deposit-form.pdf

MWT

theyiddo said:

Which of the below statements would cause the mortgage provider to reduce the size of mortgage they would offer me:

- This gift is given freely, no interest will be charged and no repayment is required

 - There will not be any interest retained in the property being purchased

 - This gift will be secured by a second legal charge repayable on the sale of the property if required

 - This is a loan and it will be expected to be repaid upon the sale of the property with a second legal charge to protect it although no monthly payment will be expected

 - I/we will (Continue to) reside in the property once the mortgage completes

That is the wrong question, the answers that are correct and accurate is what you should be giving...

Hoenir

Will your mortgage lender accept a gifted deposit from someone living in the house who is not a direct relation? 

kingstreet

... and the lender is?

The mortgage market isn't homogeneous so something acceptable to lender one won't be to lender two. As an example, what you are trying to do would be a straight decline by Santander and many other lenders because;-

If the answer is yes to any of the questions below, unfortunately we'll decline the application;-

Will an occupier who isn't an applicant on the new mortgage application be paying a lump sum towards the purchase of the property?

The questions asked on the gift form aren't going to determine how much you can borrow, but IF you can borrow at all.

Hopefully, you will have selected one of the small number of lenders willing to accept this approach.

dreaming

I am currently gifting my daughter the deposit for her first home and have already signed the documents to say that it is "freely given" and that I will have no interest in the purchased property. The last 2 points indicate (to me at least) that it is not a gift but a loan. My daughter's broker told her that certain banks/building societies are likely to lend a lower amount or offer a higher interest rate in the case of gifted deposits - luckily my daughter's mortgage offer is approved and the purchase is proceeding. I have to say that I feel as if my life has been picked over to prove where the funds have come from.

Hoenir

dreaming said:

I am currently gifting my daughter the deposit for her first home and have already signed the documents to say that it is "freely given" and that I will have no interest in the purchased property. The last 2 points indicate (to me at least) that it is not a gift but a loan. My daughter's broker told her that certain banks/building societies are likely to lend a lower amount or offer a higher interest rate in the case of gifted deposits - luckily my daughter's mortgage offer is approved and the purchase is proceeding. I have to say that I feel as if my life has been picked over to prove where the funds have come from.

Yours is a different scenario. There's something else to this tale that hasn't been told. 

Emmia

theyiddo said:

Hi all,

Apols if this has been asked an answered before.

I'm currently buying a house with a gifted deposit from my partner - which will be received upon the sale of their house. The house/mortgage will only be in my name and not theirs, and they will be living with me in the house.

The mortgage provider requires a letter to be completed stating the nature of the gifted deposit.
Which of the below statements would cause the mortgage provider to reduce the size of mortgage they would offer me:

- This gift is given freely, no interest will be charged and no repayment is required

 - There will not be any interest retained in the property being purchased

 - This gift will be secured by a second legal charge repayable on the sale of the property if required

 - This is a loan and it will be expected to be repaid upon the sale of the property with a second legal charge to protect it although no monthly payment will be expected

 - I/we will (Continue to) reside in the property once the mortgage completes

OP are you trying to avoid higher rate stamp duty or obtain the benefit of first time buyer status which you have, but your partner does not?

silvercar

Emmia said:

theyiddo said:

Hi all,

Apols if this has been asked an answered before.

I'm currently buying a house with a gifted deposit from my partner - which will be received upon the sale of their house. The house/mortgage will only be in my name and not theirs, and they will be living with me in the house.

The mortgage provider requires a letter to be completed stating the nature of the gifted deposit.
Which of the below statements would cause the mortgage provider to reduce the size of mortgage they would offer me:

- This gift is given freely, no interest will be charged and no repayment is required

 - There will not be any interest retained in the property being purchased

 - This gift will be secured by a second legal charge repayable on the sale of the property if required

 - This is a loan and it will be expected to be repaid upon the sale of the property with a second legal charge to protect it although no monthly payment will be expected

 - I/we will (Continue to) reside in the property once the mortgage completes

OP are you trying to avoid higher rate stamp duty or obtain the benefit of first time buyer status which you have, but your partner does not?

I would guess both.

Some of the suggested answers are bizarre. Anything that is a gift doesn't require any repayment or any interest.

Hoenir

silvercar said:

Emmia said:

theyiddo said:

Hi all,

Apols if this has been asked an answered before.

I'm currently buying a house with a gifted deposit from my partner - which will be received upon the sale of their house. The house/mortgage will only be in my name and not theirs, and they will be living with me in the house.

The mortgage provider requires a letter to be completed stating the nature of the gifted deposit.
Which of the below statements would cause the mortgage provider to reduce the size of mortgage they would offer me:

- This gift is given freely, no interest will be charged and no repayment is required

 - There will not be any interest retained in the property being purchased

 - This gift will be secured by a second legal charge repayable on the sale of the property if required

 - This is a loan and it will be expected to be repaid upon the sale of the property with a second legal charge to protect it although no monthly payment will be expected

 - I/we will (Continue to) reside in the property once the mortgage completes

OP are you trying to avoid higher rate stamp duty or obtain the benefit of first time buyer status which you have, but your partner does not?

Some of the suggested answers are bizarre. Anything that is a gift doesn't require any repayment or any interest.

That's not the issue though. 

Brie

We purchased our home with a gifted amount from MiL who was moving in with us.  We made it clear that the money was a gift and MiL would not be on the mortgage, not be responsible for making any payments for the mortgage nor acquire in any way any ownership of the property.  

The problem for you is that the one giving you the money and living in the house with you is not an elderly family member for whom you are taking on care duties (as in our situation).  I suspect that any gift made by someone you admit will be residing with you as a partner could be assumed by the bank to acquire some ownership of the property due to the nature of your relationship.  They may look on this with a bit more favorably if there's a document from a independent solicitor which confirms that the money is a gift with no comeback in case of breakup.