Gifted deposit question

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  • Yorkie1
    Yorkie1 Posts: 11,537
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    You say you aren't attempting fraud, but you're potentially not telling the truth to the lender if you say the money is your savings / your OH's savings.

    That isn't the truth - neither you nor your OH has saved that money at all. It may have sat in your savings account for a number of months, but 'saving' is a concept which demonstrates an ability to set aside money from income over a period of time. This £40K is not saved by you; it's a gift from someone who is neither on the mortgage, nor related to someone who will be on the mortgage. To say it is savings is misrepresentation at best and potential fraud at worst.

    Have a look at this thread which is not on all fours with your situation but has some elements of overlap.

    It feels to me - and I might be wrong - that you want us to tell you it's OK to tell the lender whatever you want in order to get the mortgage; but I can't do that.
  • clive80
    clive80 Posts: 25 Forumite
    Just to be clear. We would state that it is a gifted deposit.
    Not savings. I dont recall saying I was going to tell a lender I had saved this money!??! If I did it was a mistake!!
    Many thanks
  • Yorkie1
    Yorkie1 Posts: 11,537
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    It's possible I misunderstood - apologies if I did!
  • clive80
    clive80 Posts: 25 Forumite
    chinese whispers springs to mind!
  • Simon_gloster
    Simon_gloster Posts: 948 Forumite
    edited 9 April 2012 at 8:19PM
    clive80 wrote: »
    MIL would be too old to go on the mortgage!!

    Really suprised that this is such a frowned upon situation, its not as if we are telling a lie to lenders.

    Is it worth speaking to a few of the big high street lenders in local branches to see what they say?????

    Have any brokers on here had a similar scenario to this???
    Or anyone else???
    clive80 wrote: »
    Just to be clear. We would state that it is a gifted deposit.
    Not savings. I dont recall saying I was going to tell a lender I had saved this money!??! If I did it was a mistake!!
    Many thanks



    Thats fine then. The gifted deposit is what it is. Lenders, as you have posted Clive, and also what I responded to, will want the gift from close member of one of the applicants and be non repayable. That is what this ia all about, how a lender defines a gifted deposit. End of.
  • kingstreet
    kingstreet Posts: 38,688
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    clive80 wrote: »
    However partners mum has given her 40k as a deposit...

    ... So my QUESTION IS do lenders frown upon/ decline gifted deposits from a partner who is not named on the mortgage???
    You are going to struggle on two fronts.

    The first is the gift is from a non-family member. This will not be acceptable to many lenders.

    The second, if the money is in your partner's name you'll fall foul of lenders like Abbey/Santander's stance which prohibits acceptance of a gifted deposit from someone who will live in the property who won't be party to the mortgage;-
    Proof of deposit
    We may request proof of deposit, for example if a First Time Buyer was putting down a large deposit. We always require evidence of the deposit where it is £100,000 or more and is not coming from the simultaneous sale of a borrower’s existing property.

    We can accept deposits provided by gift or loan.

    We will not accept a gifted deposit if:

    provided by the vendor (unless an acceptable new build incentive from the builder/developer);
    protected by a Deed of Trust (or similar);
    the person providing it will be living in the property, but is not named on the mortgage; or
    there is a beneficial/equitable ownership/interest in the property.
    I believe the best approach to this situation is to chuck it at a good independent or whole market broker to see what they can come up with.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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