Gifted deposit and halifax mortgage

chris_appeals

Hi Abu Dina,

I just read your post, we are in the same position. If you don't mind me asking, what was the outcome in the end? Did you send proof to your solicitor? Did they update the lender? Did it effect the offer in anyway?

Thank you in advance

kingstreet

Last activity on MSE 12/09/2014 so don't hold your breath.

halifaxmortgage

Hello everyone,

Hope you don't mind that I jump in the interesting thread as I'm now in a little panic too and could do with some help/advice. My situation is that we have our own savings of £15K and my dad and sister are gifting £5K + £3K each towards our deposit. The money is currently sat in their accounts and we apply for a Halifax Mortgage next week.

So that we don't end up in a similar situation to Abu-Dina, my questions are:-

1. Are we better off transferring the gift money into our accounts now or later?
2. What do we need to do for Halifax and when?
3. What do we need to do for the Solictors and when?

Please help us as our stress levels are going to make us mad!

halifaxmortgage

Sorry guys I really need a quick reply.... BUMP!

Jenfast

Hello,
Please could someone help with our query?
I am buying a house - the mortgage will be in my name but my fiance will also live there.
The purchase price is £202,500 and we were planning to put in 5% each for the deposit. The mortgage advisor explained that my fiance would have to gift me the deposit and sign away his rights to the property, which we said was fine and he transferred me the funds. We have had the offer accepted on the basis of the mortgage in principle but when the mortgage application was submitted the lender is not prepared to accept the fact that my fiance has gifted me half the deposit.
The solicitor says they don't have an issue with it so it's obviously just because the lender is worried it gives him claim over the property.
Does anyone know of a lender where this wouldn't be an issue? My fiance going on the mortgage is not an option - he has been self employed for the last 18 months but doesn't have completed accounts and besides, he doesn't have a great credit rating.
Affordability-wise we can easily do it and he is happy to sign any documents to release any interest he may have, so it doesn't make sense to me. Surely some lenders must allow this?
So frustrating :'-(
Thank you in advance

Emmam145

JENFAST I am in a similar situation whereby my partner is the only one named on the mortgage but I am gifting 50% of the deposit. Natwest have given him a mortgage offer and I just had to send a letter to my mortgage broker stating that it was a non refundable gift and I had no financial interest in the property.

We haven't exchanged/completed yet so can't say for certain it will all go through fine (fingers crossed!) but so far so good.

Thrugelmir

Jenfast wrote: »

The solicitor says they don't have an issue with it so it's obviously just because the lender is worried it gives him claim over the property.

Without wishing to state the obvious. His money is contributing to the purchase of the property that he is going to live in. The lender may have to go to considerable expense to remove him from the property should the situation arise. Also other creditors can claim the funds as well under the Insolvency Act thereby forcing a sale of the property. As a consequence lenders internal policy may be to not to find the source of funds acceptable.

The solicitor has no say in the matter not least that they aren't advancing the money i.e. party the mortgage.

Rahini

Hello,

Our offer on a property has been accepted and of the £47k deposit that we plan to put in, £22k was gifted to me by my father from abroad in December 2017. Subsequently, he gifted me another £3300 and & mother gifted me £3500 in Jan 2018. The money is in my UK account I have already got a letter confirming it’s a gift and not a loan and that they have no interest in the property. I am sure the solicitor will want to find out about the source of gifted deposit. So will it be sufficient for my parents to provide their bank statements for the last 6 months? Or will they want to also know the source of my parent’s money? We are applying mortgage via Halifax bank and they haven’t raised any query yet. I just wanted to know what documents and proof would a solicitor require from my parents to be satisfied about source of funds?

Thanking in advance for a quick response!

Cheers!
Rahini

davidmcn

Rahini wrote: »

will it be sufficient for my parents to provide their bank statements for the last 6 months? Or will they want to also know the source of my parent’s money? We are applying mortgage via Halifax bank and they haven’t raised any query yet. I just wanted to know what documents and proof would a solicitor require from my parents to be satisfied about source of funds?

You'll need to ask the solicitor - there isn't a standard answer. Often they'll only look back 3 months, but other stories here suggest some solicitors go much further back. Nothing really to do with which lender it is, the solicitor will be applying the same policy to all funds they receive.

kingstreet

Rahini wrote: »

Hello,

Our offer on a property has been accepted and of the £47k deposit that we plan to put in, £22k was gifted to me by my father from abroad in December 2017. Subsequently, he gifted me another £3300 and & mother gifted me £3500 in Jan 2018. The money is in my UK account I have already got a letter confirming it’s a gift and not a loan and that they have no interest in the property. I am sure the solicitor will want to find out about the source of gifted deposit. So will it be sufficient for my parents to provide their bank statements for the last 6 months? Or will they want to also know the source of my parent’s money? We are applying mortgage via Halifax bank and they haven’t raised any query yet. I just wanted to know what documents and proof would a solicitor require from my parents to be satisfied about source of funds?

Thanking in advance for a quick response!

Cheers!
Rahini

Be careful. Halifax doesn't like gifts from overseas unless the donor has a UK bank account;-

Gift from family

You should obtain a letter written by the family member that meets all of the following requirements:

Addressed to Halifax

Dated within the last three months

Details the person/people gifting the deposit and the current name and address of the applicant(s), together with the property being purchased

Confirms the relationship between the person/people making the gift and the applicant(s).

They must be a family member. See definition of family member below

Details the family member's full address and is signed

Confirms the amount of the deposit, that it isn't repayable and that the family member will hold no interest in the property following completion of the mortgage

The source of the deposit.

You should also provide a UK bank statement or UK passbook from the family member showing the deposit funds in their account. Alternatively, the family member may provide a letter from their UK bank confirming that the funds are available. Additional statements may be requested where required.