Souorce of deposit

J123321

Hi All,

I perhaps should have been clearer on the loan! - my parents have borrowed it from a family friend so they know it was to help me with my house.

The lender states that the gifted deposit must be from a close family member.

Will the lender have a problem with the source as it is not actually from my parents savings etc even although I asked them and they transferred the money to me without me knowing any of this.

I just presumed they had go the money until I questioned it.


Thanks

Tansy_1980

It's fairly standard (here in NI, anyway) for a lender to ask for a declaration that the money is a gift and that the giver retains no interest in the property. I assume it's more about knowing that the applicants for a mortgage will have the sole interest in the property(aside from the bank's interest) and that they're not further indebted beyond what has already been shown through bank and credit checks.

Guest101

Landofwood wrote: »

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.

Or they said other. Or personal use. or whatever.

You dont know what they said.

silvercar

Tansy_1980 wrote: »

It's fairly standard (here in NI, anyway) for a lender to ask for a declaration that the money is a gift and that the giver retains no interest in the property. I assume it's more about knowing that the applicants for a mortgage will have the sole interest in the property(aside from the bank's interest) and that they're not further indebted beyond what has already been shown through bank and credit checks.

I agree. It is about knowing that the money is a gift to the recipient and there is no obligation (and therefore a financial burden) for repayment.

There is no requirement to chase back a number of steps to see that the source of the money is aware that it may be used to purchase a property.

silvercar

Guest101 wrote: »

Or they said other. Or personal use. or whatever.

You dont know what they said.

If they said to give to my offspring as

a) to pay for a wedding
b) a gift with no stipulation
c) to buy lottery tickets
d) to have a holiday
e) as a deposit on a house


it would make no difference.

pinkteapot

J123321 wrote: »

I perhaps should have been clearer on the loan! - my parents have borrowed it from a family friend so they know it was to help me with my house.

The lender states that the gifted deposit must be from a close family member.

Will the lender have a problem with the source as it is not actually from my parents savings etc even although I asked them and they transferred the money to me without me knowing any of this.

You're fine. The deposit IS from a close family member - your parents. I assume the money was transferred to you from their bank account, not direct from the friend's account?

You've been given a gift by your parents. Where they got it from is irrelevant. We had some money from parents and just had to give the solicitor a copy of our bank statement, showing the money being transferred in from their account, and a letter written by the parents declaring that it was a gift and they had no interest in the property. They were never asked where they had got the money from.