Deposit - declared as 'savings' should it be 'gifted'?

CuteMole

My husband and I are in process of buying a house and have £34,000 deposit. We submitted full application to TSB (via broker) on Tuesday last week, declaring our deposit was to come from savings. On Wednesday broker got in touch asking for the proof of our deposit - 3 months bank statements showing 'the build up of savings'. This last phrase is where my concern lies.

The £34,000 is made up of the following:
£14,000 in husband's bank account - from his endowment policy which matured 1st June 2015 - sent scanned bank statement showing the amount reaching his bank account and a copy of the letter from Legal & General confirming payment of endowment.
£20,000 in my Santander 123 account (making the most of full 3% interest :money: ) I've sent 3mths bank statements but the money was transferred into the account a while ago and is made up of money given to me by my parents.

In 2011 my Mum & Dad gave me £8,000 from the sale of their boat. I have a letter stating that this was a gift and that I should 'use it to pay off your credit card and student loan and save the rest for use in the future' - I had £5,000 left which I stashed in an ISA and didn't touch. In March 2014, Dad inherited a large amount of money and gave me £15,000, again with a letter saying that it wasn't to be frittered away but should be 'put to good use for the long term'. I transferred £5,000 of this into the ISA and £10,000 into my current account. Then, in May 2014, I opened the 123Account and transferred the £10,000 to get the interest benefits. In Feb 2015 I then closed the ISA (when I realised the ISA interest rate was a pittance) and transferred that £10,000 into the 123Account thus having the full £20,000 in one account.

So, back to the mortgage application ....will TSB ask about the history of where the £20,000 came from? I do have a paper/statement trail that covers as described above and Mum & Dad would be more than happy to confirm their gifts, but they were quite a long time ago and as far as I'm concerned I have been 'saving' this money for this sort of use (ie. house deposit). Mum & Dad didn't specifically give me a 'gifted deposit'. But should I have declared it as such? Or does 'savings' cover it?

Oh my goodness...what a long post :eek: ...sorry...and thank you if you managed to get to the end and might be able to offer advice :rotfl:

Contemptuous

What does your broker suggest?

CuteMole

Just told the broker it was savings, it was in my bank account, and didn't go into detail. I said that the money had been transferred into that particular account over 3mths ago and therefore wouldn't show as a 'build up of savings' - he said that should be fine, they (TSB) had only asked for 3 months statements....so that's what I sent him.

Only thought about whether this might be an issue whilst trailing various 'deposit related' threads on this forum.

TravelBugHappy

I think you now need to bare with it and see what they say. Although I think it's unlikely they'll ask for more statements they may do.
Good luck I'm sure it'll be fine.

Thrugelmir

Provide the information requested and await their response.

Veryconfused

Hi all.
I am currently in a same-ish situation.
Got myself a principal agreement for a new built and currently in the process of the full mortgage application. Halifax require prove of built up of the deposit fund over 6 month.

My situation is that my funds was transfered overseas to parents as a form of saving over the past 5 years and recently at the begining of the year they have returned a large part of the money in form of cash during their visit.

This leaves me in a rather awkward position.
Would appreciate if an expert could shed some light.

Many Thanks in advance

CuteMole

Thanks for the replies everyone but this deposit question is currently the least of my worries...
...TSB requested my original marriage certificate (I use my maiden name for work) and it has not arrived at the broker yet!! Posted 1st Class Signed For last Wednesday! The stress of Royal Mail having possibly lost it is killing me. :-(