Gifted deposits from parents living abroad...

anxious_first_time_buyer

Hi... I am currently in the process of a mortgage application. My lender is Platform. They have asked for the confirmation of gifted deposit. They provided a form for my parents to sign and require the proof of deposit (i.e. Bank Statements or Passbooks).

My parents are living in Hong Kong and they asked me if the deposit is in Hong Kong Currency ok to proof or have to change it to British Pounds. The reason they ask is they want to wait until the currency price to be lower before they transfer it to British Pounds and save money...

Does anyone know if a lender would accept the deposit in foreign currency or have to be in British Pounds?

Thanx...

ViolaLass

No idea but since you have a lender already, why not just ask them directly?

theartfullodger

Why not make it simpler & move the money into a UK Sterling account first, then transfer ££££s to the Lender: Tell them where it came from. You might want to look at "Money Laundering Regulations"...
e.g.
http://www.uk.experian.com/www/pages/responsibilities/compliance/money_laundering.html

anxious_first_time_buyer

what I really mean is my parents savings are in HK currency now, since the lender only want to see the proof of deposit, is it possible to show them my parents got the deposit now and will later transfer it to British Pounds? The reason they are doing that is they want to wait for a lower exchange rate before they exchange it.

Cazza

Some lenders would accept this, some will not. You really need to talk to Platform directly about it.

Are your parents just waiting for the exchange rate to improve so they get the best possible deal they can, or do they need it to improve, because otherwise the deposit will be short? If it's the second, that could cause problems with the lender.

anxious_first_time_buyer

Cazza wrote: »

Some lenders would accept this, some will not. You really need to talk to Platform directly about it.

Are your parents just waiting for the exchange rate to improve so they get the best possible deal they can, or do they need it to improve, because otherwise the deposit will be short? If it's the second, that could cause problems with the lender.

Thanx for the reply...

The deposit they are giving me is £20,000. Their saving accounts can show the £20,000 in H.K. currency, it's just that they want to get the best deal out of the currency rate. I know I need to talk to Platform directly regarding this but I thought I could get some possible advise in this forum.

Cazza

It was worth a try! It really is one of those things that could even be down to the individual Underwriter that has the question put in front of them, there's no definite answer. When I was advising clients, I've had both sets of replies from various lenders!

Have you applied direct or are you going through a broker? If it is simply a case of try to maximise the exchange rate for the best deal instead of needing it to improve to ensure there's enough money, it might beworth just sending Platform a copy of the bank statement with an explanation that you parents live in Hong Kong and will be transferring the money over when your solicitor says it is needed. That way you don't go putting ideas into Platform's head.....

anxious_first_time_buyer

Cazza wrote: »

It was worth a try! It really is one of those things that could even be down to the individual Underwriter that has the question put in front of them, there's no definite answer. When I was advising clients, I've had both sets of replies from various lenders!

Have you applied direct or are you going through a broker? If it is simply a case of try to maximise the exchange rate for the best deal instead of needing it to improve to ensure there's enough money, it might beworth just sending Platform a copy of the bank statement with an explanation that you parents live in Hong Kong and will be transferring the money over when your solicitor says it is needed. That way you don't go putting ideas into Platform's head.....

Thank you very much for your kind reply. I am going through with a broker. I did mention to my broker that my parents live in Hong Kong and they will need some time to post back the signed form and passbook copies.

Do you think I can just explain to my broker that my parent will transfer the money once my solicitor need it or I have to put it in letter and get my parent to sign and confirm this?

Thanx!

Cazza

I would give Platform exactly what they ask for. So, if all they want is Proof of Deposit, just send them a copy of your parent's bank statement / passbook. (If it's a passbook, get a copy of the page with their names on, just to show it is actually their account, this is the sort of thing most people don't think about and it can cause a kerfuffle!)

I wouldn't be surprised if Platform do ask for a letter from your parents too, this is a fairly common request. I'd wait until they do ask for this before getting your parents to do anything though, as many lenders are quite specific about what the letter needs to say, so get your adviser to confirm the wording to you first.

If it was me as your broker, I would be happy with your explanation and would have made file notes to that effect. The lender will want additional proof though, so talk it through with the broker and they will be able to confirm with Platform the exact requirements.