Being charged for a gifted deposit?

Laura84
Laura84 Posts: 13 Forumite
in Mortgages & endowments
Hi All

Is it normal to be charged in excess of £500 solicitor fees for having a gifted deposit?!

The gift is only £2000 and they are saying that they need to verify that the donor isn't going to go insolvent!

Halifax are aware of the gift and have had the relevant letter signed by the donor.

Thanks in advance
«1

Comments

  • ACG
    ACG Posts: 24,400 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    My solicitor doesnt do it.
    £500 to check bank statements seems excessive.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Laura84 wrote: »
    Halifax are aware of the gift and have had the relevant letter signed by the donor.

    Solicitor works for the Halifax as well.

    Are you sure the correct figure has been quoted?
  • libf
    libf Posts: 1,008 Forumite
    My solicitor charges £50+VAT. (Or maybe it was £60... Less than £100 total anyway.)
  • Laura84
    Laura84 Posts: 13 Forumite
    In the letter it says ...

    £150+vat for collating the information.
    £95+vat for drawing up declaration of solvency.
    £123.00 for insurance policy.
    £30+vat for dealing with indemnity insurance!

    Seems ridiculous that we have had £2000 gifted to us and £500 of that will go on fees!

    We actually don't even need to gift towards our deposit now but we did 6weeks ago to make up our deposit when applying for mortgage!

    Thanks for your replies.
  • amnblog
    amnblog Posts: 12,693 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Ouch - that stinks.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ACG
    ACG Posts: 24,400 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Does the lender need an indemnity policy for the gift?
    Can you find your own? Its not something I deal in but maybe someone like Swinton, Towergate, Hiscox etc may be able to help?

    If you are not happy, question it with them.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • libf
    libf Posts: 1,008 Forumite
    Wow. All my solicitor did was send my parents a letter asking for them to state in a certain way that it was a gift and also to send a bank statement, I think. Yours seem much more... Thorough. And they filled out Nationwide standard form for gifts.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    A site that does policies for brokers came up with £80(seems to be the min as that cover £40k as well)
  • ACG
    ACG Posts: 24,400 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    edited 20 September 2015 at 11:13AM
    Collating information and dealing with insurance...does dealing with insurance not fall in to collating information?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    If they are making up this £500 for handling a policy
    What are they charging for the rest of the job?
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