Mortgage deposit - gift from overseas parents

Thrugelmir

Suggest you speak to a broker to help guide you through the process along with finding a suitable lender. There are rules in place for good reason. You can help yourself by starting to normalise your own financial affairs straight away.

Contemptuous

insideoutsider wrote: »

So let me ask again, pls put aside your thinking I'm trying to be dishonest and smart for now... if I have some of the deposit in the bank, evidenced by bank statements as saved by me and my parents gave me some of the deposit, will I still be asked to give reasons why my parents gave me x sum of money?

I can't imagine you'll be asked WHY. It is quite common for parents to help their children onto the property ladder. They will be required, however, to at the least confirm in writing that it is a pure gift, they expect no repayment and will have no interest in the property.

amnblog

No-one is going to ask why your parents are gifting your funds.


The only concern is where it has come from and that it is a gift.


Tracking the source of the funds is a legal requirements under money laundering regulations (to stop money earned illegally being brought into the legitimate economy).


Therefore it is not go enough for a Lender to see a suitable sum in your bank account. If funds arrived suddenly they ask where they came from.


The solicitors and lender needs to satisfy themselves the money is both 'clean' and not a loan.

CathA

We gave our daughter some money recently for the same purpose, a letter was required by the solicitor, who no doubt gave a copy to the lender, saying that we were giving xxx the sum of £xxx as a gift and that we were not lending it in any way. Handwritten letter, 5 minutes work max, no problem. Get a letter sent from your parents ASAP if they are overseas, then you'll have it in place when it's required.

amnblog

any such letter has to be in the correct format