Part of deposit - gift from friend... would that be a problem???

1stTB_2

Hi,

We've got my offer accepted at 135.000.
To get 10% deposit we used our savings about 6.500 and gift from a friend 6.000, and we've some gold (1000). Have some spare cash for fees and solicitors.
It's a gift, not a loan.
We applied for RBS mortgage. Agreed in principle.
Yesterday we received a letter from our solicitor with a form to fill and return. We need to declare source of a deposit. What should we say?
Help please, we really need to buy. Nice house at very very good price in London.

Thank you.

frankw5

You can claim that it is gift from a friend, but you may need to evidence that that friend will claim no part of the property. Its just a form filling exercise, but some lenders just like to cover their backs.

jenny_13

I had exactly the same with Nationwide as they wanted to confirm the deposit was a gift from my grandmother and no a loan. I think they just do it to check that your not committing yourself to another loan with could effect the repayments. We found it all fairly easy although my grandmother got the wording slightly wrong the first time.

Good luck and I hope everything goes well for you.

1stTB_2

Thanks, but what should we exactly state?
6.000 gifted
7.500 saved
Is that correct?

We can obtain a letter from that friend saying its a gift, can be such deposit inconvinient to RBS?

frankw5

can be such deposit inconvinient to RBS?

Doubt it, although they may want a more binding letter, maybe one that they will send out. Apart from that, I doubt you will have a problem.

1stTB_2

thanks for your help

fingers crossed

serenedipitycarole

Hi, I am in a similar position - only the gift letter is to reduce credit card and then they will agree loan - only thoughts thoughts are it has to be a relative not friend.

How are you doing.......

Me sitting on the edge of my seat

serenedipitycarole

P.S. If the loan has been in your account for 90 days I understand you need say nothing other than it is your deposit But confirm this before proceeding please

1stTB_2

Today we received a letter from RBS that mortgage has been agreed (not in principle-valuation and full credit check has been done) and they didn't ask us about the source of deposit at any point.

We've sent a letter from the friend to our solictor with the printouts of balances from our saving accounts (we don't get a statements - online account only). I'm quite worry about that, because they would like to see a history of our savings, but we cannot show that. Most of our savings we collected during last month from family and friends (we were lending a lot of money but only to trusted people (mainly abroad where we come from, still haven't collected everything but we've got enough for now) and selling some things. So on our current account statements we've got massive cash injection in one month. I'm affraid about that. But it's genuinly OUR MONEY.

Anyone with similar experiences???

Joe_Bloggs

I offered to give £5K recently to assist my parents with funding for a house purchase. I had saved throughout the year in case it was necessary. I wait in limbo. I would not have expected any of the money back and would sign papers to prove it. There is a lot of good will out there. We should all try to manage our affairs so that we do not depend upon fortune.
J_B.