My mortgage deposit is a gift

Baby_A

Hi All,

I am in the process of exchanging (hopefully next week), my mortgae deposit which is 5% is a gift from a relative. I am scred to say this to the solicitor as I am told the mortgage lender may withdraw their offer. Is this right?

Its is a gift and I dont have to pay any back, any advice please?

Thanks

Debt_Free_Chick

Baby_A wrote:

I am in the process of exchanging (hopefully next week), my mortgae deposit which is 5% is a gift from a relative. I am scred to say this to the solicitor as I am told the mortgage lender may withdraw their offer. Is this right?

Nope - never heard of that one before.

Indeed, I think more and more young people are buying property with the deposit gifted to them by parents or relatives.

Has the deposit been paid to you yet? If so, then I would simply state "own funds". If you have the money, then it's yours as you say you don't have to pay it back, so it would not be a lie to state "own funds".

If the relative is paying the money to the solicitor, then definitely state "gift from relative" so that the solicitor expects the money to come from another person.

HTH

Good luck

r.mac_2

Never heard of this either.

As it is a gift it is your money anyway, technically, so i really wouldn't worry about it. I would go with the advice above.

Good luck with your purchase and I hope that you enjoy being a home owner.

Baby_A

POst 7 on this link say it. http://forums.moneysavingexpert.com/showthread.html?t=323995

Or have I misunderstood?

I havent been given the money yet, thought I would take it near the exchange date, but I might allow a few more days so it comes to my account and then I transfer to the solicitor.

kjl26

Part of our deposit was a gift, and as I remember the mortgage broker asked us to get a signed statement from the person gifting it (my partner's father) to confirm that it was a gift and he would not be seeking repayment in part or full. We did that and it was all fine. I think the only thing they are concerned about is 'gifts' that are actually loans and therefore add to your repayment commitments.

cwcw

kjl26 wrote:

Part of our deposit was a gift, and as I remember the mortgage broker asked us to get a signed statement from the person gifting it (my partner's father) to confirm that it was a gift and he would not be seeking repayment in part or full. We did that and it was all fine. I think the only thing they are concerned about is 'gifts' that are actually loans and therefore add to your repayment commitments.

Just so long as the relative isn't expecting a Peerage.

jewel22_2

we gave a deposit as a gift to our son, we had to sign a declaration that we would have no rights to any proceeds from the house when he later sells ,this was done by the solicitor.

Robert_Sterling

The solicitor asks where the money come from because of the Money Laundering Act.