Gifted deposit rejected from South Africa

sunflowa20

Hi All

I am hoping someone can help or come up with a bright idea
I am a British citizen and have lived here for 9 years. I was born in SA. My mom is South African and my dad British, hence I am fortunate enough to have citizenship.

I currently own an apartment and do not want to sell it. Halifax have given me permission to rent it out. We have had an offer accepted on a house that offers us more space and is closer to work. In order to get this house, my mom has given us the deposit. She is in SA, and the money has come from SA. She had shares that she sold (to my granddad it so happens). The money is already in my account.

I got a call from my mortgage broker today saying Leeds do not want to accept a gifted deposit from SA. He suggested I find someone else willing to gift me the deposit, then I just pay them back with the money my mom gave. I feel really uneasy about this as I may have to pay tax on it then. As well as the fact that they have to sign a letter stating they do not want the gift paid back. So I could just refuse to pay it back if I was a greedy person, but my main worry is what happens when I do pay the money back to them, how will that affect my mortgage if the lender finds out? (Also, I don't know who I can even ask!)

Does anyone have any advice or bright ideas? (Sorry, I know this is a long rambling post)

ACG

Your broker gives decent brokers a bad name.

Find a new broker, not something I have dealt with personally but im sure it can be done.

betmunch

I would suggest using a lender that accepts a gift from South Africa.

Failing that, its already in your account, just wait until its considered your own savings.

lucie_1985

So your broker is effectively suggesting that you launder the money..?

betmunch

Its not money laundering.

But its also not something a lender would be happy with!

martinsurrey

lucie_1985 wrote: »

So your broker is effectively suggesting that you launder the money..?

lets not get all CSI on here...

money laundering is concerned with the proceeds of crime (money obtained illegally), which this is not, so it is not laundering, full stop.

Not saying its a good idea, but its not illegal, ergo its not money laundering.

if they ask the 3rd party where they got the money from and they lie, then it might be fraud.

ACG

It is illegal. Its mortgage fraud.

fraud is an act of deception intended for personal gain or to cause a loss to another party. The general criminal offence of fraud can include:

• deception whereby someone knowingly makes false representation
• or they fail to disclose information
• or they abuse a position.

http://www.sfo.gov.uk/fraud/what-is-fraud.aspx

amnblog

Is there a particular reason why the case is going to Leeds?

We do these cases regularly with deposits from overseas without issue through other Lenders.

They like to have proof of the source of the funds but apart from that, no issue.

silvercar

betmunch wrote: »

I would suggest using a lender that accepts a gift from South Africa.

Failing that, its already in your account, just wait until its considered your own savings.

How long would that be? (Out of interest)

betmunch

silvercar wrote: »

How long would that be? (Out of interest)

I wish I could answer that mate.

I would go with when the applicant starts calling it their savings rather than grandads inheritance.

Of course the lender may disagree.....

silvercar

betmunch wrote: »

I wish I could answer that mate.

I would go with when the applicant starts calling it their savings rather than grandads inheritance.

Of course the lender may disagree.....

So if it was received into a savings account and then fed across to a main bank account, it wouldn't be so obvious as money from abroad.

Seems discriminatory that an inheritance or gift from abroad is problematic, but from the UK is less of an issue.