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Deposit gift from parents

edited 30 November -1 at 1:00AM in Mortgages & Endowments
30 replies 3.8K views
JB678JB678 Forumite
6 posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi - I was wondering if someone could help me while I was to hear from FA?

We have a mortgage offer from Halifax. I had given our information to the FA and everything was sorted. Our parents are topping up our deposit for us. We have £50k and are getting a further £18k from them as a gift.

I had let the FA know how much deposit we had, but didn't realise it mattered that some of it was a gift. I just thought as long as we had the money that was ok.

A friend, who also had a gift from her parents asked if we'd had to get a letter stating it was a gift not a loan. I said no but realised that I should have told the FA that part of the deposit was a gift.

I have told FA today and they have let Halifax know that our deposit is not all proceeds from the sale of our house, some of it is a gift. To be fair, £10k of the gift pays the stamp duty and solicitors fees so only £8k towards the house.

What do you think Halifax's reaction will be? Will they withdraw our offer?

Thanks for reading.
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Replies

  • The_JThe_J Forumite
    1.3K posts
    No it won't matter.
    The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.
  • I think stating categorically it won't matter is a bit too simplistic as I think it could conceivably (and does) matter to the lender.

    It is unlikely to matter but only the Halifax can state for certain whether it would have any impact. What does your IFA state? this is what you are paying them for.
    Thinking critically since 1996....
  • The_JThe_J Forumite
    1.3K posts
    Maybe I wasn't clear. It categorically will not matter to Halifax.
    The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.
  • JB678JB678 Forumite
    6 posts
    Thanks very much. Financial Advisor has put a call in to their Business Development person (I think that's what she said) at Halifax and is waiting to hear back.

    She thinks it will be fine and that at the most they will want a letter stating it's a gift rather than a loan.

    I trust the FA very much, but can't help worrying which is why I posted here while I wait as it's helpful to get other points of view. Many thanks for taking the time to help. :)
  • You were clear I just think a 4 word reply from a random on an internet forum would not allay any of their fears. On what do you base your assertion? Do you work for Halifax?

    I am pretty sure in their applications they ask for source of deposit - if they didn't care they wouldn't ask it.

    I only suggested that Halifax would be the best source of a categorical answer because conceivably it could matter (given the question is part of the mortgage application).
    Thinking critically since 1996....
  • brisbris Forumite
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    I think what he means is that they care about the deposit source, but it won't matter if it's a gift. Which is true, but the OP may and probably will need a declaration from the parents stating it is a gift. They won't care about the gift, but they will care that they have something in place to state there will be no claim on the house at a later time because of the gift.
  • ThrugelmirThrugelmir Forumite
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    bris wrote: »
    I think what he means is that they care about the deposit source, but it won't matter if it's a gift.

    Gifts do matter. As conceivably the money can by reclaimed by the donors creditors in the event of default by the donors.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • JB678JB678 Forumite
    6 posts
    Thanks very much everyone!

    Thrugelmir - do you think we might have a problem then? I really hope we don't...are some lenders not keen on gifts?
  • gaz141gaz141 Forumite
    110 posts
    i've been offered by the leeds. My mum is helping me with the deposit. They are sending a form to confirm that my mum will have no claim on the property and it is solely a gift, they seem quite happy with that
  • ThrugelmirThrugelmir Forumite
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    JB678 wrote: »
    Thrugelmir - do you think we might have a problem then? I really hope we don't...are some lenders not keen on gifts?

    Not necessarily. I was merely illustrating why lenders are cautious. The size of the gift is often an important factor. Its not as straightforward as some imagine.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
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