Proof of Gift

19112012

Hi

Im a FTB, my parents are considering giving me a gift towards deposit of house, however they asked a question i dont know the answer to....... will the mortgage provider want to see theire bank statements to see where this money come from? Or if they sign letter saying they have no interest in property and will not seek repayment will that be enough?

betmunch

The answer is.... Maybe.

In most cases the lender will not ask, but they would be well within their rights to do further checks.

Why would it be a problem if they did want to see, say, the last 6 months bank statements to show the funds?

kingstreet

As betmunch said, they may request nothing. Alternatively, they may ask for confirmation this is a gift without strings, or confirmation, plus evidence of the source of the funds going back anything upto perhaps a year.

It varies, from case to case and lender to lender.

For example, if you score high enough, you may not be asked for any evidence of savings, income, status etc, by the lender. However, the solicitor who will be acting for both you and the lender may request the deposit information later in the process.

holly_hobby

They will have to sign a disclaimer stating that the gift is made without reservation - thats a given.

The lender may or may not ask for an audit trail re the tsf of deposit, but your Solicitor will - in order to satisfy money laundering regs.

If things are as you say, there really isn't anything to worry about, its just a case of dotting i's and crossing t's with regards to any lender/solicitor requirement.

Hope this helps

Holly

19112012

thanks guys

they are just old school !!