'Loan' deposit that isn't actually a loan. Potential problem?

Kwisatz

Hi all,

I saved a measly deposit for a house and just as I was putting in an offer, I told my dad and he offered to help out with it so I could get a better rate. The problem is he sent the money (£15k) from his company account (XYZ Ltd) and labelled it as a LOAN. The reason this happened is because all his drawings from the company are put through a directors loan account and so its just easier for his accountant to track. This isn't a loan and just a gift from a parent and I'm worried when I'm going through my statements with the mortgage advisor they'll look at it and ask questions and perhaps think my deposit is a short term loan that I took out. Is there anything I can take with me that will prove that it's not actually a loan?

I don't know if it matters but he's the only person employed by his company and works as a contractor.

Thanks!!

silvercar

You may need a letter from his accountant confirming that your dad has taken a loan from his business and given the money to you as a gift.

Thrugelmir

silvercar wrote: »

You may need a letter from his accountant confirming that your dad has taken a loan from his business and given the money to you as a gift.

The accountant isn't in a position to certify this fact. Not least that he isn't an authorised official of the Company.

Landofwood

silvercar wrote: »

You may need a letter from his accountant confirming that your dad has taken a loan from his business and given the money to you as a gift.

??

A signed letter from the father is more likely to be required, but I imagine some lenders will still find this dubious.

My recommendation is to engage a broker who knows the lenders that are less likely to request bank statements, then the 'loan' reference will not be queried.

You'll still need the gift letter either way, but your conveyancer will advise on this requirement.

Kwisatz

Thanks for the advice! Due to talk to a broker on Tuesday so we'll see what they say