FTB - Deposit Problems

SophieAlexis84 wrote: »

Evening all -

So we are now at the next hurdle(s) of our mortgage journey.

Background
We are due to get married next year
We have 3 children together
We live in Scotland

We are currently trying to apply for a mortgage and after getting declined by NatWest have managed to up the deposit to 10%. Initially we were trying to apply for the mortgage in my partners name only. However after speaking with a new broker the have said that we cannot do this as the deposit is being gifted by my parents.

After a quick search I have discovered that Halifax seem to be okay with this. Does anyone know if this is still the case?

Our only other option is to submit a joint application but I am in a DMP and after downloading my credit report it transpires that there has been some messing around with dates when debt has been purchased. For example I entered the DMP in July 13 but Halifax have now sold this debt on and from my report it looks like the DMP only began this year.

Also I have noticed that Barclay Card seem to have only applied a default once the debt was sold in 2015 nearly 2 years after I began the DMP, so I have a default date from then and then another one was applied from the new creditors when they purchase so technically I have 2 default dates for the same debt?

Are we totally at a loss here and just gave to accept that buying a house just isn't for us?

Doing a "sole application" when you both living in property, isnt for everyone and there is risks that you need to think long and hard about..... I'm no expert but if you really do want to do a sole application in your partners name, I'm sure there is a few Lenders that will accept gifted deposit from your parents. Your parents would need to sign something to say it is a "gift" for your partner and that they will have no interest in the property. They also have to show where the funds came from to keep within money Iaundering rules. You will also need to sign a form from the Lender to say, the Lender can take the property back if anything happened to your partner.....Yes, at the end of the day, the Lender would have more rights on the property than you, as you would not be named on the mortgage or the deeds. Maybe your current broker isnt "whole of the market" so is limited on the Lenders he can try, which is why he said it would be difficult. Your options might be limited and it might mean you dont get the best deal on the market BUT I'm sure there are Lenders that would accept your parents "gift deposit" for your partners mortgage.....The only thing I dont know is, as you are not yet married, that might be an issue, as your partner has no connection "yet" with his future in-laws(the gifters). So it might be a case of trying to find a Lender that takes "gifted deposit" from a 3rd party.........as mentioned, I'm no expert so finding a good broker to look into that, might help answer your questions....

As you can see, lots to think about....best wishes