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Proof of deposit with HSBC

amalis
Posts: 532 Forumite
Hi,
i am applying for a mortgage with HSBC and started to worry about proof of my deposit. My deposit is mostly savings (HSBC account) and a gift from my parents. Will I have to prove that it is a gift? My parents live abroad and sent me just an international wire transfer.It will be really difficult for me to get some paper from them that it is a gift. Does anyone have experience with HSBC and their requirements for proof of deposit?
Thanks in advance!
i am applying for a mortgage with HSBC and started to worry about proof of my deposit. My deposit is mostly savings (HSBC account) and a gift from my parents. Will I have to prove that it is a gift? My parents live abroad and sent me just an international wire transfer.It will be really difficult for me to get some paper from them that it is a gift. Does anyone have experience with HSBC and their requirements for proof of deposit?
Thanks in advance!
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Comments
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They will probably want a letter from them confirming it's a gift and that they don't want any interest in the property.0
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Yup, a letter confirming an unconditional gift should be fine.
Just one thing to mention, some lenders ask for proof of SAVED deposit, and this is different !!!
Usually where your income is being stretched, they may ask for proof that deposit is saved, ie. from your own sources - then you have to show a statement with regular savings, and it cannot be a gifted deposit.
HTHI'm a nutter :j0 -
The bank and possibly the solicitor will take an interest in the source of the funds for a number of reasons but in the main this is anti money laundering procedure.
If the money has come from abroad they may want you to jump through a couple more hoops, I recently went through this with a client though not with HSBC as they won't deal with brokers. My clients had to get a bank statement showing the money prior to it being sent to them and a letter confirming re gift, not loan and no interest in property etc.Happily an ex mortgage broker!0 -
happybroker wrote: »The bank and possibly the solicitor will take an interest in the source of the funds for a number of reasons but in the main this is anti money laundering procedure.
Hadn't thought of that aspect so well pointed out!!! :TI'm a nutter :j0 -
oh that sounds bad.
as i told, main part of my deposit is saved and the saving account is with the same HSBC. Hope they will not make all this checks just of 1/4 of deposit.0 -
assuming your family don't earn their money from drugs or child traficking I wouldn't worry about it lol!
the "saved deposit" thing is not something I've experienced in recent years, it used to be an issue some years ago if a bank thought you maight be borrowing the money but even then a letter from a family member confirming the gift was usually sifficient. I don't see that you should be expecting any problems.Happily an ex mortgage broker!0 -
HSBC are fine with deposit as a gift from family.0
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happybroker, i am just worrying about the timescale. As the matter of facts I am only applying on Thursday, so no one asked me for this, but reading some topics I wanted to be prepared about what to expect.
Will it help if in the reference to the tranfer it is clearly stated: funds flow.My banks told me that should be sufficient to anyone to understand it is not a loan0 -
You don't need to worry about this as you don't yet know what HSBC will ask for, IMHO I think you will be ok but make sure you ask on Thursday when you see your mortgage advisor and then you will have a definitive answer and be able to obtain any paperwork they require.Happily an ex mortgage broker!0
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Might be worth asking your parents to send you a letter addressed to HSBC, confirming that they have given you, their son/daughter £x amount of money as a contribution towards a deposit for a house purchase. This money is a gift, and you will have no interest in the property nor will you be seeking it's repayment in the future. yours sincerely yaddayadda.
Worth having that available so you can show it to HSBC if requested. no guarantee they wouldnt ask for something else as well but that typically is enough with most lenders and circumstances.0
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