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Souorce of deposit

J123321
J123321 Posts: 19 Forumite
in House buying, renting & selling
Hi,

I am awaiting a mortgage offer for my first home. I have stated to the lender that I will be taking a gifted deposit of £4000 from my parents to top up my deposit.

My parents transferred £4000 into my account 1 month ago - the solicitor has asked for source of deposit. My parent have actually borrowed money to help me.

Will the lender have an issue with this?

Kind Regards
«13

Comments

  • penguingirl
    penguingirl Posts: 1,397 Forumite
    Do your parents have a bank statement showing the amount in their bank account without showing it is a loan? I presume that your solicitor just wants evidence it has come from your parents.

    Does the lender of the loan know that your parents were planning on using it as a gift?
  • Landofwood
    Landofwood Posts: 765 Forumite
    Your parents committing fraud is not your concern, it's their decision.

    The solicitor will probably ask your parents to sign a letter stating that the deposit is a gift, they are not expecting you to repay it, and they retain no financial interest in the property.

    It's rare for lenders to request bank statements from your parents, but not unheard of.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Landofwood wrote: »
    It's rare for lenders to request bank statements from your parents, but not unheard of.

    More likely to be the solicitors asking for evidence of where the money came from, so they can tick the money-laundering boxes. But probably not a concern as long as the OP doesn't have to repay anything.
  • mrginge
    mrginge Posts: 4,843 Forumite
    Landofwood wrote: »
    Your parents committing fraud is not your concern, it's their decision.

    The solicitor will probably ask your parents to sign a letter stating that the deposit is a gift, they are not expecting you to repay it, and they retain no financial interest in the property.

    It's rare for lenders to request bank statements from your parents, but not unheard of.

    Where is the fraud?
  • westv
    westv Posts: 6,608 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    mrginge wrote: »
    Where is the fraud?

    Something to do with borrowing money to fund a mortgage??
  • suited-aces
    suited-aces Posts: 1,938 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    westv wrote: »
    Something to do with borrowing money to fund a mortgage??

    IF it IS a gift (I'm not questioning it btw), OP's parents borrowed money to give OP a gift. Perfectly legal.

    OP is using a gift to fund a deposit. Perfectly legal.

    Posts like these make me question the jury system.
    I'm not bad at golf, I just get better value for money when I take more shots!
  • westv
    westv Posts: 6,608 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    suited-aces wrote: »

    Posts like these make me question the jury system.

    It was a question not a statement.
  • Landofwood
    Landofwood Posts: 765 Forumite
    suited-aces wrote: »
    IF it IS a gift (I'm not questioning it btw), OP's parents borrowed money to give OP a gift. Perfectly legal.

    OP is using a gift to fund a deposit. Perfectly legal.

    Posts like these make me question the jury system.

    You are missing the point. When the parents took out a loan, they would have had to provide a reason, if they had said "to give to my offspring to buy a house", the loan would have been declined, so we can assume that the loan was obtained through deception.

    Like I said, this is the parents' problem.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Landofwood wrote: »
    When the parents took out a loan, they would have had to provide a reason

    Not necessarily.
  • Landofwood
    Landofwood Posts: 765 Forumite
    davidmcn wrote: »
    Not necessarily.

    Cool, please elaborate.
This discussion has been closed.
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