Inheritance and new house purchase

[Alacazoo]

Hoping someone with more experience of mortgages will be able to help us out!

My brother and I are joint trustees and beneficiaries of a trust set up by my late mother that includes our family home. My brother always lived with mum and so still lives in the house. The terms of the will/trust are that the house needs to be sold and the proceeds split between us 50:50.

My brother plans to use his half to put down as a deposit towards a new house of his own. However, he's not keen on renting for a short while (issues with multiple pets!) he would rather use the inherited amount as a deposit and move straight from mum's house into a new house - so effectively he would be in a chain, even though he's a first time buyer.

I would be fine with this, but is it possible? Will a mortgage provider accept his share of the inheritance as a deposit even if it's not in his account yet?

If anyone can help/advise, I'd be grateful!

If you mean that he wants to buy a house before selling your mother's house and tell the bank that he'll owe them the deposit and give it to them at a later date, then no.
Or, do you mean that when you sell, he will use the equity from your mothers house as the deposit and as you say, be in a chain, then yes.

Is he a first time buyer if he's inherited a house?

He might be in a chain, depending on the situation of the prospective purchaser. If they are selling a property then your DBro's sale would form the first part of the chain. If the prospective purchasers are cash buyers, then he wouldn't be in a chain.

the lender would grant the mortgage depending on your DBro stated ability on his mortgage application to put down the deposit payment from the proceeds of the property sale. They may or may not need a conversation with his conveyancing solicitor with your permission just to check the facts, ie that he has an inheritance and that money would be available on the sale of your DMs house. Whether or not the money is sitting in his bank account is immaterial to them. How would they even check.

Think he becomes a home mover. If the deed in trust in altered on exchange or prior. Not sure. He's not the homeowner yet as it's in trust, the trust owns the house and he is a beneficiary, so when it's sold he will get his 50/50 share. Hard to know whether a bank would then accept that as a deposit as the point of exchange, they should I suppose. But, he would have to be in a chain for a seamless transition from home A to home B. A nightmare for sis, I'd advice to sell as they will be chain free (easier) rent or move in with sis or whatever, then buy at leisure as a FTB chain free, by that point his name will not be on two house deeds. CGT is another discussion..

He’s a beneficiary of a trust that owns a house, rather than being a homeowner, if I’ve understood the OP correctly.

Surely he would have to show proof of funds to the mortgage company? He won't have that until he actually receives the cash.

that depends on how the trust was drawn up