Gifted deposits

Fluffylovecheeks

Seen this term used a lot lately

what does it mean?

is it what it says on the tin?

why would a lender refuse to use it?

betmunch

It means the person selling the house is selling it below the market value and giving the buyer the money to use as deposit.
Its a paper transaction though and no money actually changes hands.


Lenders refuse to use it as they are concerned that the property is actually worth the lower amount (after the gift) rather than the sale price (the price reported to the lender)

In my opinion there shouldnt be a problem using gifted deposits as the property is valued by a professional surveyor. If he confirms the value is the sale price and it is a genuine gift then wheres the problem.

However lenders will say there is no financial commitment from the buyer as they havent put any of their own money into the property.

Hope this helps

Cheers

Fluffylovecheeks

Thanks!
Thought that was the case
Thought it may include the 5K My dad gave me to help!
Thanks again