gifted deposit problem

buesosha

Hi all,

Just looking for some advice from people who have been in the same situation and what they had to do to resolve.

Basically, ive been approved for a mortgage but they have offered me 5k less than what i need because of affordability check. House price is £153000 my deposit i have saved is 15300 10%. They will borrow me £132700. The only way i can get the 5k is through a gifted deposit from my dad, however, this is where it gets complicated.

My longtime girlfriend (who is not being put on the mortgage for reasons i dont want to discuss) has got a 5k loan and is going to withdraw this and my dad will put this money into his account over 2months as cash deposits.

Ive read a lot of forums on her but seem to be getting conflicting information. My question is, will the solicitors ask for a bank statement from my dad and query these cash deposits or is it just a case of he needs to sign a letter saying hes gifting the money has no interest in the property etc and give them some id?

Will the solicitor want to trace these cash deposits? Is there any better way around this?

betmunch

So whos coming up with the cash? Your dad? or your girlfriend?




The solicitor will need to be satisfied of the source of the money so may request bank statements going back over a set period so they can trace the funds.


You say you are short on what you can borrow, have you tried a different lender?


Who is handling the application for you?

Malmo

So are you implying that your girlfriend's loan was in fact taken out with the intent to help cover the shortfall?

buesosha

yes my girlfriend is getting the loan and I am intending to put that money into my dads account. I'm just curious as to how much the solicitors will look into where my dad got the money from. I've read on other threads that the solicitors only as for a letter to be written and signed from the gifter that they are not interested in the property etc.


Does anyone have experience of being in the same situation

amnblog

You are asking for help to commit mortgage fraud.

betmunch

amnblog wrote: »

You are asking for help to commit mortgage fraud.

Agreed, its got disaster written all over it.


You need to explain the situation to your solicitor and see what he says.


Or, find a lender willing to lend you more

kingstreet

How did you manage to apply to a lender where the amount you applied for wasn't affordable?

For a broker, I'd view that as a hanging offence. You need to establish the provable income and affordable mortgage from the affordability calculator before you even apply for a decision in principle.

csgohan4

They will want to know where you father got the 5K from and why there is 5k coming into his account.

If you can't afford a price don't push yourself to the limits

MaebyJade

The definition of a gift is that you never have to pay it back and the person giving it doesn’t hold any interest in the property. In your case, as it’s a loan the money will have to be paid back! Also your dad will have to declare where the money he is gifting you came from.

And yes, solicitors will carry out anti-money laundering checks to establish where the money came from.

The last thing you want to do is to not be truthful on your mortgage app and as well as being automatically declined, you will have a fraud marker put on your record which will mean no credit of any form for at least 6 years (could also have your existing bank accounts closed)

[Deleted User]

Surely a lot of people tell white lies. 'my dad is giving me £10k gift' but really you will be paying them back £50 here and there? Or borrowing money to pay off an existing debt?


With all these new rules in place, people who have happily paid off a mortgage with no issued for 10 years (like me) suddenly can't get a re-mortgage.


My first mortgage had a 97% LTV and my dad gave me a cheque for £4k and no one asked a thing. I realise they need to tighten up, but it'll make more people commit 'fraud' I think.

saverbuyer

dalo wrote: »

Surely a lot of people tell white lies. 'my dad is giving me £10k gift' but really you will be paying them back £50 here and there? Or borrowing money to pay off an existing debt?


With all these new rules in place, people who have happily paid off a mortgage with no issued for 10 years (like me) suddenly can't get a re-mortgage.


My first mortgage had a 97% LTV and my dad gave me a cheque for £4k and no one asked a thing. I realise they need to tighten up, but it'll make more people commit 'fraud' I think.

Putting the apostrophes around the word really isn't necessary.


Fraud will do.