Gifted deposit letter

sp383

Hi,

I am currently in the process of buying a house the mortgage has been agreed and the deposit I need £23,522 as the deposit. My grandparents are gifting me £29,000 to cover deposit, fees and to help starts dome renovations. My question is: In the gifted deposit letter do I write the amount I'm being gifted as £29,000 or the deposit amount of £23,522?

I'm assuming it's £29,000 as this is the actual amount being gifted to me and therefore not liable for repayment/interest.

Thanks

witchy1066

the amount you put in the gifted deposit letter is the amount they are gifting you for the deposit , not the whole amount they are gifting you ,
if you put the whole amount in the gifted deposit letter this amount is what they will take as your deposit ,
the surplus money is merely a gift , not part of your deposit

sulphate

Agreed with witchy, the only reason you need to justify the amount is for the mortgage lender and the mortgage lender does not need to know where the money came from to pay solicitors fees etc.

My mum gifted us some money for our deposit and the letter she wrote was:


Dear [solicitors name],

Re: [address of house]

I confirm that I have given the sum of £xx to xyx and xxx in respect of the above property. I also confirm that this gift is non-refundable and non-interest bearing and I will not retain any interest in this property whatsoever.

xyx is my daughter.

Yours faithfully,

[signature]
[mothers name]
[date]

Thrugelmir

Speak to your solicitor as they will obtain the necessary documentation from you to fulfill the lenders requirements.

Is the lender aware that the deposit is entirely gifted?

sp383

Thanks. Yes the bank is aware that the deposit is entirely gifted, does it make a difference if it is or not?

Nelly321

Yes follow the advice from the previous posters

We are being gifted £8,000 however we haven't declared it as a gift as our lender knows we have more than we need for the deposit already saved up, so they said it wasn't necessary.

Happy days!

Paully232000

Just to add to this we had to provide a gifted deposit/no interest in the property etc letter to our mortgage broker even though we had proved already that we had twice as much in our own savings as we were using for the deposit.
Gift from family

Nelly321

I guess it depends on the lender then... As ours told us not to bother. If you had a broker though you could have ended up with any lender...

butterfly72

Hi, I've just come across this thread re gifts. I didnt realise they had to be declared. How would the lender know part of a deposit was a gift? Is it law to declare the info. I only ask as we are about to find a mortgage broker and the bank of mum & dad (both branches!) have offered to contribute.

Annisele

There's no law requiring you to volunteer any information about where your deposit came from. But you do have to honestly answer any questions your lender asks (to lie is to commit mortgage fraud). The lender will ask where the deposit came from!

kingstreet

More likely the lender will delegate the responsibility to its solicitor to establish the source of the deposit and obtain the evidence of that source.