A question about : Gifted part of a house/mortgage the other
Hi
I am looking for advice as my mortgage adviser has confused me!
My parents want me and my husband to have their current house when they move out. They have agreed to gift us two thirds of it if we can take out a mortgage on the final third. (around Ј100,000).
Our mortgage adviser says this is a special case and only specific lenders will allow this.
He says they are giving us a gifted deposit where as actually what I was thinking would happen would be I just already own the 2/3rds and want to take a mortgage on the other 3rd?
What I want to know is why does it make a difference?
Previously I've never had to pay a mortgage adviser but this one is asking for Ј299 for his services if we complete a purchase.
Is he just trying to get out money by being cagey or am I just getting really confused??? 
Best answers:
- I'm afraid what you think you are doing is confusing me, so I suspect you and your mortgage advisor are looking at it from different perspectives.
You do not own 2/3rds and the mortgage company owns 1/3rd.
You own the whole thing and have a mortgage for the equivalent of 1/3rd.
You state that would be Ј100,000 and therefore the house must be worth Ј300,000.
Your parents are gifting you Ј200,000 of the equity which is what makes it a difficult case which will not be acceptable by all lenders.
Therefore you need to either do a normal mortgage with a deposit of gifted equity, or one that would be a considered a concessionary purchase.
Does this help? - Sounds like a complex situation where the advisor will earn their fee!
- It's a concessionary purchase and most lenders won't do it.
Those that do will allow someone to purchase a property at undervalue from a close relative using the price reduction as their deposit. - I am now pretty confused!!!
Quote: - This is all so confusing..! I just want to be able to get a decent mortgage deal.. I don't mind paying the broker if this is now the done thing!
Just the whole process is confusing me.. I think I am changing brokers though because I can only speak to this one on the phone and I'd much rather just sit down with someone and speak to them properly!
This is also a very good point!!
Quote: - To be fair it appears your current broker is 100% correct in what he/she is telling you - why change ?
- Do your parents need the Ј100k or could they just become your lender.
Just increase the size of the loan to take account of the interest they won't be charging you.
if they need the money then a lender will be needed. - You should be fine to get a good mortgage deal.
Lenders will have limits on how much the gift can be so its imperative that the right lender is selected.
You should be fine I reckon
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