'gifted' deposits.

Grenage

Greetings,

We sold our house last year, and have been staying with relatives until we complete on a purchase. While I have the proceeds from the sale in my account, I also have a sum of money which was, I suppose, technically gifted.

My Grandmother passed away, and left my Mother as her sole beneficiary; my mother took this money and gave a chunk of it to my Sister and an equal chunk to me. I suppose this would be classed as a gift rather than inheritance, as we weren't declared in her will.

When we purchase a house this year, the online form is going to ask me where the deposit came from, be it savings, inheritance, gift, etc. This was a while ago, and all of my money is sitting in one account, in my name - be that monthly savings, sale proceeds or the aforementioned gift from last year.

What the hell do I declare as the source of my deposit? I've nothing to hide, and all of the money will be coming from my partner and I. I can't see a problem with just saying 'savings', but I might be wrong.

elverson

Put it down as gift from your mother.

Grenage

Cheers; I guess I'll have to apply in branch if there's no way to state multiple sources. If I remember correctly, there wasn't.

HappyMJ

If the majority of your deposit is from savings then I would put savings.

i.e saved £15,000 and £5,000 gifted from grandparent via parent then the majority is savings. If the gift is older than 3 months many banks will ignore it anyway.

You would be best speaking to a broker so that you know which bank would accept a gift from so long ago.

Grenage

Hi Happy,

That makes sense - thank you.

glentoran99

HappyMJ wrote: »

If the majority of your deposit is from savings then I would put savings.

i.e saved £15,000 and £5,000 gifted from grandparent via parent then the majority is savings. If the gift is older than 3 months many banks will ignore it anyway.

You would be best speaking to a broker so that you know which bank would accept a gift from so long ago.

Sorry to but in but im going to be in a similar position soon, Im unsure why this matters, You have the money does it matter to the bank if it was a gift from a long time ago?


and what do you mean accept it? Do you mean they could refuse it as a deposit?

HappyMJ

glentoran99 wrote: »

Sorry to but in but im going to be in a similar position soon, Im unsure why this matters, You have the money does it matter to the bank if it was a gift from a long time ago?


and what do you mean accept it? Do you mean they could refuse it as a deposit?

A gift from a year ago has by now been spent and replaced by your income and would now be called savings.

If you had a gift of £20,000 given to you a year ago from any source then you've been living on that money and saving your income instead therefore the money you're using isn't a gift any more it's now savings.

Recent gift's from people who aren't your parents may not be accepted as deposit so you do need to check. It's something to do with money laundering.

If you broke down every penny of my savings then some is savings from income, some is gifts from parents, some is equity from house sale, some was left over from a loan 18 months ago that I took out and never spent. However, the majority of my deposit in my case is Gambling wins and they aren't accepted but I spend my Gambling wins on living expenses and save every single penny I legitimately earn turning them into savings.

Thrugelmir

Grenage wrote: »

When we purchase a house this year, the online form is going to ask me where the deposit came from, be it savings, inheritance, gift, etc. This was a while ago, and all of my money is sitting in one account, in my name - be that monthly savings, sale proceeds or the aforementioned gift from last year.

One account is easy. Just go backwards from today to account for the money you have. Statements provide adequate detail as the source.

Grenage

Yes I can show when and where the funds came from, that won't be a problem. I know I want a Nationwide mortgage, and I know which mortgage, so I'll probably just have to do the application in-branch.

Shouldn't be an issue with multiple sources then.

Thrugelmir

Grenage wrote: »

Yes I can show when and where the funds came from, that won't be a problem. I know I want a Nationwide mortgage, and I know which mortgage, so I'll probably just have to do the application in-branch.

Shouldn't be an issue with multiple sources then.

Solicitor will perform the actual deposit verification.

Grenage

But what I tell then has to match what I tell nationwide, surely?