FTB Help !!! Deposit Problem

FTB_Scotland

I posted this on another thread on site but was advised to post here.

I have made an offer on a property (scotland) which has been accepted. Mortgage has been agreed and all paper work signed and accepted by the lender/bank. I had to provide them with a gifted deposit letter from my mother as she gave me the £20,000 needed for the deposit, this was done and accepted by the lender/bank. (she also gave my brother this amount 8 years ago).

My solicitor has just sent me their paperwork through which requires 12 months proof of my mother's bank statements (due to the money laundering act 2007) to prove how she got this money . My mother was very reluctant to provide this and eventually admitted she recently obtained an unsecured loan for an amount of £25,000, (£20,000 of that she gifted to me).

I am worried that this will invalidate my mortgage agreement somehow, as she has recently taken out the loan. Will my solicitor contact the lender and provide them with this information? , even though they have accepted her gift letter which states it is a gift, doesnt seek repayment and she has no interest at all in the property. Or is it a case of they just need to make sure that no "ill gains" have taken place.

Many Thanks and all replies appreciated.

FTB_Scotland

p.s. had mixed replies in other thread

cahillg81

From an underwriting perspective as long as your mum signs the Gifted Deposit letter it is not the lenders concern that it came from an unsecured loan, this would be no different to a parent releasing equity in a property by re-mortgaging or taking out a 2nd charge, which would have both probably been better options - unless of course she's not planning on repaying it ;-)

stator

In theory they are two completely separate processes and shouldn't cause a problem.

Your mother has signed the money over to you and she can't claim that it was a loan and she can't make any claim on your house. That should satisfy the lender.
The solicitor has to do the anti-money laundering checks to make sure you're not criminals. The fact that the money comes from a loan may make your solicitor ask extra questions but there's nothing illegal about that.
Because the solicitor works for the lender too they might feel duty bound to inform them the gifted deposit comes from a loan. They could scupper the process if they feel the loan compromises the gifted deposit declaration, I have heard of less strange things causing problems.