Mortgage issues

[OnTheSauce]

Hi all,

After some advice, please.

Recently had an offer accepted on a property. Great. Got the mortgage arranged, and the deposit money (between my girlfriend and I) meant it can be afforded comfortably.

Problems have arisen.

The mortgage broker I was using isn’t happy with how the deposit is being put together. To provide some clarification:

I want the mortgage to be in my name only, but my girlfriend and I to both be home owners. I understand this is called an ‘indirect mortgage’.

I have around 10% of the property’s value as a deposit, and she has around 15%. Her 15% has been genuinely gifted to her by her Aunt as an early inheritance.

It seems that no high street lenders want to entertain this scenario or take our money. I can understand why; they want to keep clear of any potential relationship complications.

So, question is: anyone here know of any lenders/brokers who can do hard to place mortgages?

Thanks in advance

[Muncher]

Why do you want the mortgage to be in your name only? Presumably you want the property to be in your name only too?

If so, surely you can see that position will cause issues down the line?

[Sarnie]

Why do you want your girlfriend to own the property but not be liable for the debt?

Gifted deposits usually need to be from direct family members Eg parents, grand parents or siblings.....

[OnTheSauce]

Because I wanted her to use her 15% so she can be a joint owner, and I'll be the official mortgage payer. We'd then reevaluate the situation at the end of the 2/3 year period.

Plus, my credit is excellent and hers is very poor. Been advised by one broker that he couldn't put her on the mortgage at all...

Hmmm. Thought as much re the gift.

Edited by OnTheSauce on Friday 15th February 11:37

Edited by OnTheSauce on Friday 15th February 11:44

[Sarnie]

OnTheSauce said:

Because I wanted her to use her 15% so she can be a joint owner, and I'll be the official mortgage payer. We'd then reevaluate the situation at the end of the 2/3 year period.

Plus, my credit is excellent and hers is very poor. Been advised by one broker that he couldn't put her on the mortgage at all...

Hmmm. Thought as much re the gift.

Edited by OnTheSauce on Friday 15th February 11:37

Edited by OnTheSauce on Friday 15th February 11:44

If you have a 25% deposit, there will be specialist lenders who will lend to you both, so you can both be on the mortgage and the deeds but this is reflected in the rates.

If you want prime rates, then you will have to have the mortgage and deposit in your name and buy at 90% LTV.

You can't have it both ways.

Personally, I'd keep this simple and keep it all in your details and revise in a couple of years, at which point she can be added to the mortgage and deeds and pay off her 15% at that point if things are going well...…..

[OnTheSauce]

Thanks for the info, much appreciated.

Any recommendations on who to try for the option you suggest?

Cheers

[KTF]

Why doesnt she transfer the money to you then you apply and say you have a 25% deposit?

[Sarnie]

KTF said:

Why doesnt she transfer the money to you then you apply and say you have a 25% deposit?

Where does he say the 15% arriving in his account has come from, without lying?

[Sarnie]

OnTheSauce said:

Thanks for the info, much appreciated.

Any recommendations on who to try for the option you suggest?

Cheers

Your Broker should be able to help you with this, if they know what they are doing!

[JulianPH]

OnTheSauce said:

Thanks for the info, much appreciated.

Any recommendations on who to try for the option you suggest?

Cheers

Yes, Sarnie himself would be an excellent option.

[Killer2005]

Apply for mortgage in sole name with partial gifted deposit in sole name, then do a transfer of equity and add her in due course.

Girlfriend would need to be very trusting and pass lenders credit critiera to do so though.

[Sarnie]

Killer2005 said:

Apply for mortgage in sole name with partial gifted deposit in sole name, then do a transfer of equity and add her in due course.

Girlfriend would need to be very trusting and pass lenders credit critiera to do so though.

Wouldn't work...………..

[p1doc]

I would apply for mortgage in own name with own deposit and use her money to overpay 10% each year

[Brads67]

Sarnie said:

Where does he say the 15% arriving in his account has come from, without lying?

Why would he even have to say, what has that got to do with anything ?

Genuine question by the way. What business is it of anyones where the money came from.

[mackay45]

Brads67 said:

Why would he even have to say, what has that got to do with anything ?

Genuine question by the way. What business is it of anyones where the money came from.

Money laundering.

[jonttt]

Money laundering regulations ie the banks are legally required to confirm the source of funds. If solicitors are engaged they will also require proof of source of funds to allow them to pass through their Client accounts ie it is everyone’s business these days as its a legal requirment !

Strangely enough in my experience those with the biggest issue with this are the ones who don’t pay the correct taxes on income lol ....... it can be a right pain in the backside but the crack down on tax avoidance / criminal proceeds of crime / anti terrorism funding is well overdue. And yes there is an argument to say that those who its aimed to catch will find a way to avoid it but you will be surprised how many “innocent” people it catches out ;-)

Gotta love the cashless society and “big brother” !

Edited by jonttt on Monday 18th February 09:59

[Sarnie]

mackay45 said:

Money laundering.

^This.

[StuTheGrouch]

Sarnie said:

If you have a 25% deposit, there will be specialist lenders who will lend to you both, so you can both be on the mortgage and the deeds but this is reflected in the rates.

If you want prime rates, then you will have to have the mortgage and deposit in your name and buy at 90% LTV.

You can't have it both ways.

Personally, I'd keep this simple and keep it all in your details and revise in a couple of years, at which point she can be added to the mortgage and deeds and pay off her 15% at that point if things are going well...…..

How about going down the 90% LTV route, with both as joint owners on a 2-year fixed rate. OH pays her 15% as over payments within the first two years of the mortgage. At the end of the 2-year period, move mortgage to a 75% LTV (or lower, assuming house value increases).

I'm not a mortgage guru by any means. But that surely doesn't fall foul of any fraud or money laundering issues.

[Sarnie]

StuTheGrouch said:

How about going down the 90% LTV route, with both as joint owners on a 2-year fixed rate. OH pays her 15% as over payments within the first two years of the mortgage. At the end of the 2-year period, move mortgage to a 75% LTV (or lower, assuming house value increases).

I'm not a mortgage guru by any means. But that surely doesn't fall foul of any fraud or money laundering issues.

The second applicant is unlikely to be accepted at 90% LTV, given what the OP has stated about her credit history in the first post...…….

[StuTheGrouch]

Sarnie said:

StuTheGrouch said:

How about going down the 90% LTV route, with both as joint owners on a 2-year fixed rate. OH pays her 15% as over payments within the first two years of the mortgage. At the end of the 2-year period, move mortgage to a 75% LTV (or lower, assuming house value increases).

I'm not a mortgage guru by any means. But that surely doesn't fall foul of any fraud or money laundering issues.

The second applicant is unlikely to be accepted at 90% LTV, given what the OP has stated about her credit history in the first post...…….

Yes, but as you suggested earlier, the OP applies for the first mortgage as a single applicant with just their deposit.