Gifted Deposit - Contribution from me

lavalamp1

Hi All,

For the purchase of my property, all of the deposit will be gifted by my parents and is a non repayable gift etc. Towards the deposit I will not be contributing and I was wondering whether banks would find this a problem?

I received a DIP from Barclays and the MA didnt mention anything about it.

amnblog

Was the MA aware of the source of the deposit.

(In itself it is not a problem)

lavalamp1

She was told at the meeting it was being gifted from my parents. Although I am not sure whether I will be going through with Barclays. Do other banks look into why I am not contributing and why my parents gifting it all?

amnblog

All Lenders look at everything.

lavalamp1

Have gotten off the phone to Natwest and have been told that it is not a problem to have parents gifting the entire deposit. Entirely up to me how I want to pay the deposit.

elvenlomadia

We've just had our mortgage application to Natwest approved, my Dad gifted us the whole deposit and we supplied a gifted deposit letter to our mortgage advisor. Wasn't asked any more questions about it, and they didn't seem to have a problem. We do have some savings of our own held back to cover fees and some work needed on the new house so not sure if that made any difference.

Hedgehog99

You just need to prove to the MA that you parents will not want the money back in the lifetime of the mortgage - e.g. if they were lending the money to you, MA may worry your repayments to your parents could jeopardise your ability to pay your mortgage. Whether or not you are contributing to the deposit shouldn't make any difference.

Oh, and there's the "parents must survive for seven years after the gift" thing as well WRT tax.

lavalamp1

Oh of course I will be providing a letter confirming it is non repayable and everything else that comes with it. Good to see Natwest have been ok with it.