Proof of source of funds for deposit

Dird

GingerBob wrote: »

Good old MLP strikes yet again. Is there no end to this absolute boll*cks that we have to put up with in this country?

I know right. What's the point me selling all this weed then struggle to spend the proceeds how I want

giddypenguin

mortgagewannabe wrote: »

Thanks david,

Our bank is halifax and I have found the following info on their website:-



However there is no mention about whether familty members themselves can borrow on credit-cards etc to pay as a gift to their relatives and if you could point me to any such information online then I'd be ever so grateful.

I don't think the bank cares if the family member is borrowing the money (although how does he plan to get the money out of the credit card? Cash withdraws? Horrible interest) they will make him sign to say the money is a gift and he will not be repaid for it.

Are you sure he can afford this? It doesn't sound like a good plan to me (from an outsider opinion) I'm not sure I would (personally) allow my dad to do this for me. Could cause a massive heap of trouble later.

mortgagewannabe_2

I have tried to explain to my dad on numerous occasions that I'd rather take extra debt on myself, but he's still insisting that he wants to do right by his kids. He said he won't have any problems paying it off.

jayII

On a totally different note, if your dad is insistent on borrowing this money it and you're intending to accept, then direct him towards the credit card guides on MSE. It's possible to 'loan' money from cards at 0% interest, for the price of roughly 2% balance transfer fee.

davidmcn

mortgagewannabe wrote: »

However there is no mention about whether familty members themselves can borrow on credit-cards etc to pay as a gift to their relatives and if you could point me to any such information online then I'd be ever so grateful.

They don't mention it because they don't care - it just needs to be proved as being his money, and a cash advance from his credit card will be adequate proof that it hasn't actually come from somebody else.

My only caveat would be that the fact he's borrowing it may in turn raise questions about whether it genuinely is a gift by him, or whether you're actually borrowing it by proxy. I'm not sure to what extent the lenders are inclined to disbelieve letters from the donors saying the money is a gift.

If you want to know for sure then speak to a broker.

giddypenguin

mortgagewannabe wrote: »

I have tried to explain to my dad on numerous occasions that I'd rather take extra debt on myself, but he's still insisting that he wants to do right by his kids. He said he won't have any problems paying it off.

If that's the case wait a few months for him to save up the £3k and use that instead? Would be cheaper than credit cards...

mortgagewannabe_2

Thanks everyone for your helpful replies.

@ JayII - That's much appreciated. I will show him this and see what offers there are.

@ Davidmcn - There is always a risk that lenders may think something worse case scenario, but I guess we'll have to cross that bridge when we come to it. I don't have a broker as I've gone directly to the bank.

@ Because I've already got an AIP and seen a house that I like and he's getting offended if I decline.