Advice on deposit, who gets it???

webby815 · 14 April 2008 at 6:30PM

Hi I will try to make this brief. My husband and I will be buying my mams house in the next few months, we have around a 5% deposit but the way things are at the minute we are worried that is not enough. The house is worth around £100K but she said she will only charge us around £85k. If she was to say to the bank we were buying it for £100K but we are giving her a £15K deposit directly to her ( ie not through the mortgage lender) and therefore only need a mortgage for £85k, would that be enough to satisfy the mortgage lender or would they want the money passed through them?

Hope this makes sense.
:-)

silvercar · 14 April 2008 at 9:14PM

You can't lie on your mortgage application. Some lenders will accept gifted deposits, some won't. A broker will know who will look kindly on this.

Cazza · 14 April 2008 at 9:18PM

You'd normally give the deposit to your solicitor, to then give to the vendor's solicitor. Your solicitor will work for the mortgage company and you, if they don't get £15,000 from you, they will be obliged to tell the mortgage company that you have told them you've given it directly to your Mum. You then get into a very grey area. Don't bother, buy the house at £85,000 and do it all correctly, these things have a nasty habit of biting you on the bum!