First time buyer mortgage advice.
Discussion
So myself and my wife have been renting since around 2009. We're in the position now that we feel we are ready to buy our own house and want to move forward with it this year.
I indirectly inherited 30k from my grandad passing 2 years ago. I say indirectly as I wasn't on the will but it was always agreed that my grandad would split his estate between his two children (my mum and uncle) for them to split between their children. Everything as halved equally, my mum ended up with 60k, as did my uncle. My mum is splitting the 60k between my sister and I. This is all good and well, in fact she keeps pushing us to get on with it. The money isn't to be paid back and is in no way a loan.
So, with the way banks are with lending money and wanting paper trails for everything the days, where would we stand with this 30k deposit? What paperwork would we need as proof to satisfy the mortgage company of where it came from and under what terms?
We are yet to speak to a mortgage advisor but as a rough guide, how much in fees should we expect to pay buying a £130k house?
I indirectly inherited 30k from my grandad passing 2 years ago. I say indirectly as I wasn't on the will but it was always agreed that my grandad would split his estate between his two children (my mum and uncle) for them to split between their children. Everything as halved equally, my mum ended up with 60k, as did my uncle. My mum is splitting the 60k between my sister and I. This is all good and well, in fact she keeps pushing us to get on with it. The money isn't to be paid back and is in no way a loan.
So, with the way banks are with lending money and wanting paper trails for everything the days, where would we stand with this 30k deposit? What paperwork would we need as proof to satisfy the mortgage company of where it came from and under what terms?
We are yet to speak to a mortgage advisor but as a rough guide, how much in fees should we expect to pay buying a £130k house?
SarnieSte1987 said:
I too am using part of my inheritance for my house deposit, though that was significantly less than yours. Nevertheless, the mortgage broker didn't need any proofs regards to this
Interesting. We've been told by a few people now that we will need to provide proof of where the money came from, apparently so they can be sure we haven't just taken out a big personal loan or having to make repayments to family members etc. It's not an inheritance, it's a gift from your Mum.
They will want a letter from your Mum stating it's a gift, that you are not required to repay it, and that she will have no interest in the property you are mortgaging.
Standard stuff, shouldn't cause you any problems.
Some mortgage advisor's charge fees, some just take a commission from the lender. It's really up to you whether you think paying fee is beneficial to you or you can find a competent broker who won't charge you a separate fee. Having had a mortgage direct and using a broker (no fee) last time around, I'd go with a broker every time. The guy came to my house for about an hour, sorted everything out for mortgage, life insurance and income protection and kept me informed of progress via email, no effort on my part beyond preparing copies of payslips/bank statements as requested in advance. However my circumstances are as standard as they come - employed, good credit, equity and not pushing affordability, so I didn't see the value in paying extra. If your circumstances are non-standard, then paying a fee to a broker who'll work hard for you can be worthwhile.
They will want a letter from your Mum stating it's a gift, that you are not required to repay it, and that she will have no interest in the property you are mortgaging.
Standard stuff, shouldn't cause you any problems.
Some mortgage advisor's charge fees, some just take a commission from the lender. It's really up to you whether you think paying fee is beneficial to you or you can find a competent broker who won't charge you a separate fee. Having had a mortgage direct and using a broker (no fee) last time around, I'd go with a broker every time. The guy came to my house for about an hour, sorted everything out for mortgage, life insurance and income protection and kept me informed of progress via email, no effort on my part beyond preparing copies of payslips/bank statements as requested in advance. However my circumstances are as standard as they come - employed, good credit, equity and not pushing affordability, so I didn't see the value in paying extra. If your circumstances are non-standard, then paying a fee to a broker who'll work hard for you can be worthwhile.
Edited by quinny100 on Monday 25th January 23:22
quinny100 said:
It's not an inheritance, it's a gift from your Mum.
They will want a letter from your Mum stating it's a gift, that you are not required to repay it, and that she will have no interest in the property you are mortgaging.
Standard stuff, shouldn't cause you any problems.
^^This.They will want a letter from your Mum stating it's a gift, that you are not required to repay it, and that she will have no interest in the property you are mortgaging.
Standard stuff, shouldn't cause you any problems.
Your Mum inherited the money, she is gifting it to you.
A standard gifted deposit letter will cover this off.
MysteryLemon said:
So myself and my wife have been renting since around 2009. We're in the position now that we feel we are ready to buy our own house and want to move forward with it this year.
I indirectly inherited 30k from my grandad passing 2 years ago. I say indirectly as I wasn't on the will but it was always agreed that my grandad would split his estate between his two children (my mum and uncle) for them to split between their children. Everything as halved equally, my mum ended up with 60k, as did my uncle. My mum is splitting the 60k between my sister and I. This is all good and well, in fact she keeps pushing us to get on with it. The money isn't to be paid back and is in no way a loan.
So, with the way banks are with lending money and wanting paper trails for everything the days, where would we stand with this 30k deposit? What paperwork would we need as proof to satisfy the mortgage company of where it came from and under what terms?
We are yet to speak to a mortgage advisor but as a rough guide, how much in fees should we expect to pay buying a £130k house?
Good luck! This is exactly what my wife and are almost at the end of, with a hopeful completion in mid-March with the process starting mid-December.I indirectly inherited 30k from my grandad passing 2 years ago. I say indirectly as I wasn't on the will but it was always agreed that my grandad would split his estate between his two children (my mum and uncle) for them to split between their children. Everything as halved equally, my mum ended up with 60k, as did my uncle. My mum is splitting the 60k between my sister and I. This is all good and well, in fact she keeps pushing us to get on with it. The money isn't to be paid back and is in no way a loan.
So, with the way banks are with lending money and wanting paper trails for everything the days, where would we stand with this 30k deposit? What paperwork would we need as proof to satisfy the mortgage company of where it came from and under what terms?
We are yet to speak to a mortgage advisor but as a rough guide, how much in fees should we expect to pay buying a £130k house?
We received a gifted sum (not dissimilar to yours) from my mother-in-law, which originally came from my wife's grandmother when she passed away. Stevemr has hit the nail on the head exactly: we had to prove where the gift came from, and how my mother-in-law received it originally. We just had to state how much of the deposit was our own versus how much was gifted, along with showing our last 3 bank statements. Our solictor took care of sending out the requisite forms etc to my mother-in-law directly to fill in for ID checks etc. All pretty painless.
MysteryLemon said:
Ste1987 said:
I too am using part of my inheritance for my house deposit, though that was significantly less than yours. Nevertheless, the mortgage broker didn't need any proofs regards to this
Interesting. We've been told by a few people now that we will need to provide proof of where the money came from, apparently so they can be sure we haven't just taken out a big personal loan or having to make repayments to family members etc. Gassing Station | Finance | Top of Page | What's New | My Stuff