Have 10% deposit but as a gift off non family

Damo1977

Hi, I was wondering if anybody could help. I am looking to buy my first property but the 10% deposit is from a friend and not family. It seems lenders will not accept this. Can anybody advise as it is very frustrating and would be much appreciated. Thankyou

19lottie82

Have you actually checked with the lenders that they won't accept it? I know a lot of posters on here say that lenders aren't keen on gifted deposits but I hot a mortgage with Halifax and they didn't even blink an eye at my gifted deposit.

BazzaDP

Can you get the money off your friend in advance? Banks can't really argue if it's in your account! Though they may ask where such a large deposit into your account came from (both for anti money laundering regulations and also to ascertain any liabilities you hold to pay it back).

bristol_pilot

I wish I had a friend who would give me 10% of the value of a house!

Providing this really is a gift, not a loan, I can't see what the bank's objection would be. If asked for the source of the deposit just say 'bank account'.

Banks don't like 'gifted deposits' when the so-called gift comes from the seller of the property (implying that the sale price has been inflated by the amount of the deposit so as to in effect secure a 100%+ mortgage), but that's a different kettle of fish.

grifferz

Lenders often don't mind if a small part of your deposit is gifted and the giver signs a letter stating it is a gift and they retain no interest in the property.

Where you may be coming unstuck is if your entire deposit is a gift. They may reject your application on the basis that you have no proven ability to make savings, which is the other purpose of a deposit. That can happen whether the gift is from family or someone else.

Annisele

Is the friend going to be living in the house with you?

Damo1977

Annisele wrote: »

Is the friend going to be living in the house with you?

No I'll be living on my own