mortgage deposit shortfall

tara2013

It seems I will have a shortfall of around 10% to 12% in my deposit for mortgage application for Halifax.

However, i did not realise this when application was submitted a week ago by my MB. All my fault......

Valuation of property is due on next week.

My sister is happy to give me a gift deposit with a signed letter confirming she will not have any interest in the property etc.

What's are my options now? Could I declare gift deposit after my valuation or should this be done asap?


Thanks...

libf

Tell your mortgage broker now.

Malmo

Just out of curiosity and if it's not intrusive, how did you end up with a significant shortfall like that? In the southeast and London, that would be a sizeable chunk of money!

tara2013

Shortfall is around 10K. I have another option to sell my jewellery but really do not wanted to do that.

But my question is will it mean to re-apply the mortgage application?

I was reading Halifax Gift deposit criteria and it states the gift deposit letter should be submitted prior to completion.

Thanks for any help....

tara2013

Any help please?

nidO

tara2013 wrote: »

Any help please?

As per the above:

libf wrote: »

Tell your mortgage broker now.

silvercar

Sell your jewellery to your sister, deposit her money into your bank account so you are paying all the deposit from an account in your name. After completion your sister could gift the jewellery back to you.

No obligation to tell a lender you are selling stuff to raise deposit AFAIK.

amnblog

Your sister should prepare a gift letter to provide to Halifax confirming she does not require repayment and does not have an interest in the property.


The gift letter needs to follow a particular format which your broker should help you with.

tara2013

silvercar wrote: »

Sell your jewellery to your sister, deposit her money into your bank account so you are paying all the deposit from an account in your name. After completion your sister could gift the jewellery back to you.

No obligation to tell a lender you are selling stuff to raise deposit AFAIK.

Really is it possible? Could I sell personal stuff to any one or my sister or my friend to raise deposit?

What if lender or solicitor asked for my bank statement prior to completion?

Having said that I sold my camera months ago and money went to my bank account?

TBeckett100

As long as the money is yours it doesn't really matter how it comes. I'd get your sister to sign a receipt for the goods. Make out they were an heirloom or something.

silvercar

tara2013 wrote: »

Really is it possible? Could I sell personal stuff to any one or my sister or my friend to raise deposit?

What if lender or solicitor asked for my bank statement prior to completion?

Having said that I sold my camera months ago and money went to my bank account?

Legally you can sell almost anything that you own. Given that there is a risk of your bank account being checked, I would be inclined to err on the side of caution and be able to justify large amounts of cash appearing.

It seems very logical to me that a sibling of anyone deciding to sell family heirlooms would be interested in making the purchase. I would take a couple of photos first and possibly source a valuation.