gifted deposit concerns

melysion

I'm a FTB . My deposit is a gifted one. Its from a friend, not a relative. Its a genuine gift. I mentioned this to the IFA I initially spoke to when considering my options and he didnt bring it up as a potential problem. I also mentioned it to my eventual mortgage broker (L&C) and gave him the name and address of my friend so that the lender could contact him at a later date. Again, it wasnt mentioned that it could be a potential problem

Having done some investigation, I'm now worried that, because this is a friend and not a relative, the mortage lender will refuse me the mortgage.

The mortgage application was a slightly painful experience as the mortgage broker made a few mistakes with the application so I'm not convinced that the fact its a gifted deposit from a friend has been recorded. Who knows?

Anyway - I have the mortgage in advance and things are moving along - albeit really slowly - but I'd rather know now that this is doomed to failure than a month or so down the line. The lender hasnt asked anything about the deposit yet but I'm sure it will come up at some point.

Thanks in advance for your advice.

Wh05apk

This will be an issue with most lenders, although it may not have been picked up so far, your solictor will need to confirm the source of the deposit, and they will then report this back to your lender.

I would go back to L&C and ask them to confirm that they have confirmd that this is ok with the lender.

melysion

Oh well. Thanks a lot. I'll send off a message to L&C but dont have any expectation of a good result.

I only wish someone, somewhere had pointed this out at the beginning

Leon_W

Who is the lender ?

melysion

Santander. Not that it matters I guess. If most lenders dont accept gifted deposits from friends thats the end of it.

I did look though all my emails with L&C and they said that they had passed all the details to my lender (including the fact that he is no relation to me) - but I've got no real faith that they actually did that. lol

GMS

Whilst I do not doubt you are genuine the issue for lenders is where do they draw the line.

If I were to sell my house to you and give you the deposit in order to facilitate a quick sale then I could sign a letter to say we were friends. The fact that vendor gifted deposits are not allowed means it would not happen. After all how can you prove friendship.

L&C should know this is doomed to fail and hjopefully have had it pre agreed with Santander.

Get back in touch and check with them. If you have incurred any fees then L&C should refund assuming it goes nowhere

melysion

I've sent them an email.

melysion

Interesting. L&C say that Satander definately know - and that they asked for my friends details before they made the offer so a bit confused really.

Wh05apk

melysion wrote: »

Interesting. L&C say that Satander definately know - and that they asked for my friends details before they made the offer so a bit confused really.

"If" the lender is aware and has made the offer knowing that then you should be ok.

melysion

I've been told that Abbey is fully aware and are fine with it- so guess I'll have to wait and see. Not 100% convinced but I do remember giving the case manager the details.

Leon_W

I've just had a look at their criteria and there is nothing in there that specifically says that a gifted deposit has to come from a close family relative so I guess you maybe OK.

I'm quite surprised as most lenders stipulate that the gift has to be "family", but I guess we live and learn !