Parent Help for mortgage

sniblock

Hi,

Its January and like most others I am skint (lol),and will be for the rest of the year as the big save begins for a deposit on a mortgage begins at the end of this month. I have checked my credit file and my rating is pretty low but I have no defaults. I have taken on board all the tips that are given on this site and hopefully now my credit score will begin to climb.

I intend applying for a mortgage at the end of the year. My parents will be helping me out with most of the deposit and this money is sitting waiting on me to be in the right position to apply for the mortgage. My question is - Should my parents transfer the money into my bank just before I apply for the mortgage or am I best having this sitting in my bank for say 6 months before my application? Will having it sitting in my bank for 6 months improve my credit rating?

Any comments would be great.

Thanks

Scott

Slayerx

It will depend on a few things.

Is it a gift?
Also how did they get the 6k?

If you declare it as a gift your solicitor will need to know and want evidence due to Money Laundering rules.

If it's a gift the lender will need this in writing normally via the solicitor.
The letter will need to say something along the lines of

"we are giving *insert name* X amount of money we will have no interest in the property and we won't want the money back."

Signed Mum and Dad

matttye

No, your credit rating is all about how you manage credit - your own money doesn't make a difference.

Is your parents' money a gift or a loan? Lenders can be quite picky over loaned deposits.

sniblock

Hi,

Thanks for the reply. Do not think I said 6K? It will be in excess of this. Its from life savings and will be a gift. I do not understand, if ot is in my bank well before I apply for mortgage does it not just count as my savings? If I was just given the money say tomorrow, why would I have to tell anyone? Is there a threshold / figure that needs to be declared? If so I could just be given it in installments and nobody is the wiser?

I do not have a clue about this so sorry if I sound stupid.

Thanks again guys.

Scott

sniblock

O yeah and if I am to apply for a mortgage through my own bank then they look at my accounts. Would in not be better if I have had money sitting with them for a while?

Thrugelmir

The lender will wish to know the source of the deposit.

Slayerx

sniblock wrote: »

Hi,

Thanks for the reply. Do not think I said 6K? It will be in excess of this. Its from life savings and will be a gift. I do not understand, if ot is in my bank well before I apply for mortgage does it not just count as my savings? If I was just given the money say tomorrow, why would I have to tell anyone? Is there a threshold / figure that needs to be declared? If so I could just be given it in installments and nobody is the wiser?

I do not have a clue about this so sorry if I sound stupid.

Thanks again guys.

Scott

Sorry I misread the 6 months bit but it won't change the Money Laundering checks.

The lender will mainly be interested in your ability to pay amount of money your asking to borrow.

I'm sure someone more knowledgeable then me can tell you more about what to do about the savings but if its a gift it's best been declared.

sniblock

Declared to who?

I just thought of another idea. What if the money was transferred into my current account and I used the money for day to day living for the next year. I then direct my wages into my savings account, then technically I have saved all the money for my deposit myself? Is this crazy or is it viable? and does it gain me any advantage that I have saved it myself, surely does?

Thanks again

Scott

Caz3121

sniblock wrote: »

and does it gain me any advantage that I have saved it myself, surely does?

the advantage would be the number of potential lenders

Slayerx

The gift has to be declared to the lender and the solicitor.

sniblock

CAZ3121, so your saying the number of potential lenders would increase if I had saved all of the money myself?

Thanks
Scott