Gifted deposit from 'father in law'

[Renthorrorshow]

Was hoping my partner could get a mortgage with the help of a lump sum from my dad in addition to my partner's savings but we have been told conflicting things.

I rang a bank mortgage helpline yesterday and the person I spoke to did a webchat with a manager and came back saying it would be fine as we live together and share a child so a father in law type relationship.

Partner rang same bank today to try and progress an application but when the same question was asked he was told no as we are not married and I would have to be on the mortgage.

Should we ask the question again at this bank (perhaps the second person was just wrong?), try a different bank, or was the first person wrong and actually this isn't allowed?

No idea but id go with a mortgage broker who will then search several mortgage providers and let you know which ones would take on your circumstances, you’ll also then get to find out the best mortgage price for your circumstances. We used Habito, all online and very easy process

Why aren't you on the mortgage? If your dad does gift the money he will have to sign to say that it is a gift, not a loan & that he won't profit from the purchase.
What happens if you break up?

Thanks @Imperrysmum I will have a look at Habito.
@Cookerhood I am quite a bit older so would mean shorter term plus I am not a FTB and my partner is.

The payment from your dad will need to be declared as a gift so how will you protect it?

If you're not on the deeds and unmarried you'll have no rights to the house.

This sort of thing can get quite complex.

From the banks point of view, they worry about your dad wanting his money back.

The normal solution is for your dad to sign a letter stating that the lump sum is a gift. This means the bank aren't worried it's a loan he will demand back.

However, this means that it does really need to be a gift. If your dad is expecting it back at some point and you and your partner have split up and you are not on the mortgage or the deeds it could get very difficult indeed as he has no way of getting his money back.

If you split up, he’ll have a house that he bought with your dad’s money and, as well as being homeless, you won’t get a penny of it back.

You could just get married: registry office, two witnesses, no fuss. That’ll solve the problem more easily than anything else.

Dad is not expecting the money back. It's a significant amount but not tens and tens of thousands. House purchased will be <£200k.

So are you happy to never see the money again and that you won’t have any rights to it if you’re not on the mortgage or deeds? At the very least you need to tenants in common.

Can your dad just give him the money to add to his savings then he is just applying with more savings?

Nobody wants to think about splitting up but you should consider the worst case scenario..

@fruitpastille you have to show where all your savings have come from so would still be an issue apparently

So worst case scenario he could live in a house he owns with another woman that your Dad helped him buy and you could be homeless?

Appreciate everyone's concern but honestly feel this the only way we can get an affordable monthly mortgage payment. Will chuck away equivalent of DF gift in rent in very short order anyway if we don't move soon.

Why would your dad gift the money to your partner and your name not be on the mortgage ? In the event you split up you / your dad will have no recourse to the funds as you are not mentioned on the mortgage.

As a minimum you need to buy as tenants in common so you own a percentage of the property. You need proper independent legal advice ( which I suspect any mortgage lender would require ) as this is a complex situation which could get very messy if you split up / your dad needs the funds back due to a sudden change of circumstance etc.

You could also end up homeless with no recourse to the property

The very easy answer to this is to get married.

We've just secured a mortgage via Mojo Mortgage brokers - quick and easy, all done online and phone - worth a call.

The information you’ve been given about the term is incorrect. If the affordability check can be passed on your DPs salary alone, only his age is taken into account for the purposes of the term. Your name can go on the mortgage (and deeds) without affecting the term.

Do not be so stupid as to give a man your father’s money to buy a house that your name is not on.

worst case scenario, if you’re not on the mortgage or deeds make sure you get your solicitors to draw up a deed of trust which would protect your interest in the event of any split or sale.

Your father is crazy if he is giving your partner a gift but your not on the deed or the money is protected in some way

regardless of its it is 10k or 100k your fathers / your deposit needs to be protected if you aren’t married

your partners could kick you out the very next day & he has the house and you could very little about it

many many women have found themselves in this exact situation where they live in a partners house contributing to it and then find themselves homeless a few years later

https://www.citizensadvice.org.uk/family/living-together-marriage-and-civil-partnership/living-together-and-marriage-legal-differences/

Get married or a civil partnership done ASAP and have your deposit ringfenced so it's protected. See a solicitor ASAP and ensure that you're on the mortgage and deeds. You're making an expensive mistake which will cost you more in the long run by not going on deeds.

I would buy as tenants in common and leave your half of the property to any children you may have. This protects their share of the property and prevents another potential partner inheriting your share of the house by default if your dp remarried after you die. Get legal advice.

Please reconsider. This could go horribly wrong.

Register your interest in the property if you're against going on the deeds:

https://www.streathers.co.uk/claiming-an-interest-in-a-property-where-you-are-not-the-legal-owner/

If your relationship breaks down you could potentially be homeless if you're not on the deeds:

https://england.shelter.org.uk/professional_resources/legal/relationship_breakdown/housing_rights_of_cohabiting_sole_homeowners/preventing_sale_or_disposal_if_one_partner_is_the_sole_owner

https://www.gov.uk/government/publications/notices-restrictions-and-the-protection-of-third-party-interests-in-the-register

Your name can go on the deeds but not the mortgage

Doesn't matter if he is a FTB, you are not. Rules apply to spouses also, even if they are not a party to the purchase. He will not qualify for the FTB relief.

Therefore do the sensible thing and buy together with a declaration of trust protecting your Fathers money. OR get married.

your name needs to go on the deeds!... do not throw away this money as frankly thats what you may be doing

or marry him asap before you buy a house

I'm assuming you're not on the mortgage as you're not working? Which means you're doing wifework. Which means the house should be shared 50/50 in the event of a split. Can you make a legal agreement that you get the deposit back too? Also, why on earth wouldn't you be on the deeds? If you broke up next week, you could be homeless with a child. TBH, I'd consider getting married at this point...