mortgage deposit is cash.

floozie_2

Hello,
It's some time since I've been in here I see, apologies if this subject is covered elsewhere.

I am buying a house, my father has very kindly agreed to lend me the money for the deposit. He has just informed me the money is in cash, put away over a long period from his pension.

My intention is to put the money in my bank account. Is this likely to cause problems from a money laundering perspective?

This scenario had never occured to me until now!

Many thanks.

notanewuser

floozie wrote: »

Hello,
It's some time since I've been in here I see, apologies if this subject is covered elsewhere.

I am buying a house, my father has very kindly agreed to lend me the money for the deposit. He has just informed me the money is in cash, put away over a long period from his pension.

My intention is to put the money in my bank account. Is this likely to cause problems from a money laundering perspective?

This scenario had never occured to me until now!

Many thanks.

The fact that its a loan is going to be a bigger problem.

floozie_2

Sorry, the loan will be paid back when my ex and I sell our house.my father considers it a gift.

Flugelhorn

I think the problem is more related to the mortgage offer and the matter of gifted or loaned deposits

floozie_2

Thanks for your prompt replies, not sure I quite understand.

Presumably, if I have £15000 in my bank account as a 10 % deposit for a mortgage, this will not be a problem? The money is essentially mine.

My question is am I likely to have a problem with paying £15000 into my account in cash, and then paying it out again?

Stinkybell

You will be asked to prove where the money has come from - very hard to do when you've bundles of cash! Could your Dad not pay the money into his account and write you a cheque?

Brock_and_Roll

Stinkybell wrote: »

You will be asked to prove where the money has come from - very hard to do when you've bundles of cash! Could your Dad not pay the money into his account and write you a cheque?

How your dad answers that question will give you a good idea of the money's status!

Renter2

You need to prove where the money has come from. With my deposit it was a very long process as money had passed through lots of accounts but I had to prove where it all came from. I got £1000 for my birthday in cash which was allowed but anything above that had to be traced. Even if your dad puts it into his account he will need to show when he got it and when he withdrew it and then when he put it back in c

Tancred

floozie wrote: »

Hello,
It's some time since I've been in here I see, apologies if this subject is covered elsewhere.

I am buying a house, my father has very kindly agreed to lend me the money for the deposit. He has just informed me the money is in cash, put away over a long period from his pension.

My intention is to put the money in my bank account. Is this likely to cause problems from a money laundering perspective?

This scenario had never occured to me until now!

Many thanks.

It shouldn't be a problem if it's a gift. All you need is a letter from your father certifying that it's a gift and proof of funds, bank statements and the like etc. If it's a loan then you have a problem, as loans cannot be accepted as deposits, because you are effectively adding another loan to the mortgage!

notanewuser

Tancred wrote: »

It shouldn't be a problem if it's a gift. All you need is a letter from your father certifying that it's a gift and proof of funds, bank statements and the like etc. If it's a loan then you have a problem, as loans cannot be accepted as deposits, because you are effectively adding another loan to the mortgage!

There are no bank statements. The OP's dad has been squirrelling away cash!

princeofpounds

How has he been saving this 'from his pension'? Is this his lump sum on retirement? If he is pre-retirement he should not have access to any pension savings

If you intend to use this to get a mortgage offer, then you will need to declare this as a gift. A loan is not a deposit - the whole point of a deposit is to ensure you have 'skin in the game' which takes the first loss if anything goes wrong. Lenders will discount it for deposit purposes.

But if you state it is a gift, then it will be expected that your father provides evidence of renouncing any claim over the money. This means if something goes wrong and you can't/won't pay it back he has no comeback. This may be a big issue for him.

But no, it's not likely to be a money laundering issue unless your father can't explain the origin of the funds.