Hi
My partner and I are trying to buy a house from my folks for the asking price of 150k. My folks are willing to either "gift" 11k off the value of the house, or if we buy for the full 150k then they will give us the 11k in cash once the sale is complete.
We also have up to a further 20k for extra towards the required 20% deposit, which is being given to us by my mum and my step dad.
I finished paying a debt management plan on 8th dec 2012 so I understand that this is going to affect our mortgage application (i never defaulted on the DMP) neither me nor my partner now have any outstanding debt, which I thought would help us. As a couple we earn 37k combined per year.
I have applied for a mortgage for the 120k through a broker, who stated that Kensington Finance would be likely to lend to us, but we would need a 30k (20%) deposit of the 150k asking price. Not a problem as I could get further funds from my mum and stepdad until the purchase of the house was completed, then my dad can release the 11k cash for us also.
Everything was looking good, until the broker told me today that Kensington want evidence that my partner and I have saved 5% of the 20% deposit ourselves, which obviously we haven't. On this basis, they are not willing to lend to us, even with a 30k deposit which can be arranged ASAP.
Kensington then stated that if I was not buying the house from my dad then they WOULD lend us the 120k mortgage amount. This is the part that I really don't understand!! Why Does it matter that we are buying the house from my dad, even with a 20% deposit?
Can anyone shed any light on this, or any advice please!?
Many thanks!
My partner and I are trying to buy a house from my folks for the asking price of 150k. My folks are willing to either "gift" 11k off the value of the house, or if we buy for the full 150k then they will give us the 11k in cash once the sale is complete.
We also have up to a further 20k for extra towards the required 20% deposit, which is being given to us by my mum and my step dad.
I finished paying a debt management plan on 8th dec 2012 so I understand that this is going to affect our mortgage application (i never defaulted on the DMP) neither me nor my partner now have any outstanding debt, which I thought would help us. As a couple we earn 37k combined per year.
I have applied for a mortgage for the 120k through a broker, who stated that Kensington Finance would be likely to lend to us, but we would need a 30k (20%) deposit of the 150k asking price. Not a problem as I could get further funds from my mum and stepdad until the purchase of the house was completed, then my dad can release the 11k cash for us also.
Everything was looking good, until the broker told me today that Kensington want evidence that my partner and I have saved 5% of the 20% deposit ourselves, which obviously we haven't. On this basis, they are not willing to lend to us, even with a 30k deposit which can be arranged ASAP.
Kensington then stated that if I was not buying the house from my dad then they WOULD lend us the 120k mortgage amount. This is the part that I really don't understand!! Why Does it matter that we are buying the house from my dad, even with a 20% deposit?
Can anyone shed any light on this, or any advice please!?
Many thanks!