Family gifted deposit

Gary0102

Hello all,

I'm new here, and I hoping someone can help.

Basically, I'm a FTB and my family are looking to help me with my deposit. I have saved up 40% and a close family friend has said they will lend me the other 60% for my deposit. They have offered very generous pay back terms.

I know mortgage lenders will not like this, so I'm think of having the money transferred to my parents bank account and then have them write me a cheque and sign a letter to say its a gift and they don't expect to be paid back.

My question is, would this suffice to get round the mortgage checks? Would the lender do a check on my parents bank account?

Any help is appreciated.

Thanks,

holly_hobby

As you are aware a gifted deposit from a family friend is out, as is their requirement for you to repay the gift (favourable terms or not).

To then have it fed via your parents account (as a deliberate attempt to disguise its source), may well pose a few q's re the money laundering checks the solicitor will perform .... which due to the late date of deposit, and where it came from will ring bells IMHO .... after all ML regs are there for a good reason.

The fact that you also want your parents to sign the lenders disclaimer saying its their money, when it isn't, and that it is a true gift, which it isn't, simply amounts to a fraudulent application .... and all those involved are liable for any action taken by the lender.

Notwithtstanding the fact, that if everyone was happy to lie, and the solicitor was satisfied of no ML breach, if the property was repossessed due to your default, your family friend will have no legal claim on their "gift", which they can merrily waive goodbye to.

Think everyone will still want to play knowing the above ?

No, you're right its a bad idea at best, and can lead to a whole heap of trouble for those involved on several factors .... so please put this to bed.

Stick to your 40% deposit (which is very decent so well done !), and buy within your own means would be my advice.

Hope this helps .. even if a little disappointing x

Holly x

Gary0102

Thanks for the reply, to be honest deep down I knew it was a bad idea but a part of me thought otherwise.

My deposit will need to be 20k and I've saved up 8k so far. I've just had a promotion and have no outstanding credit so I know I can afford the mortgage. I was really just looking for a quick fix.

Thanks for taking the time to reply

gazter

holly_hobby wrote: »

Stick to your 40% deposit (which is very decent so well done !), and buy within your own means would be my advice.

Hope this helps .. even if a little disappointing x

Holly x

I think the OP means he has saved 40% of what he needs for the deposit, not a 40% deposit. I suggest its best for him not to discuss his intentions to commit a criminal act on the board though.