Gifted Deposit question

Damz

Hello, curently carrying out a mortgage application and wanting to check something in regards to gifted deposit.

My mum has sold the family house and has said she can gift me £10,000. The total deposit required for the property is £10,888. I will have my own savings of around £4000 on the day of moving in.

So I could go with gifted deposit of £7000 and savings of £4000 or a gifted £10,000 and savings of £1000.

My concern is that if I go with the latter the bank may think that I have no savings, rubbish with money etc and turn it down. If I go for the former and come across an issue such as a payslip have wrong amount or unexpected car repair bill then I may need to take up the offer of the remaining £3k gifted amount and they may then question where the moneys come from since I hadn't declared that as gifted.

The bank itself is ok with a gifted deposit but can't say which ratio of savings/gifted would be better of if there's any difference.

Any idea what would be best?

AnotherJoe

I'd say you are overthinking it. They will ask for your bank statements so will see you have £4K in savings.

But in any case that doesn't matter, what they want is the deposit, the source as long as legitimate is irrelevant otherwise they would alk for (for example) proof you have saved at least £X yourself , which I'm sure they haven't done.

Damz

cheers for that, I've been stressing out with this mortgage stuff all day. I'll give them a call and tell them that it'll be £10k gifted and the rest will be my own savings. Wish they would be more transparent with this stuff. What would I do if the statements don't show the gift money yet since the statement was produced before the funds went in?

Newbiebuyer2016

We did a gifted deposit we needed a gifted deposit letter, my fathers ID, and a copy of the statement to shows where the funds were.

When you say £4K in savings when you move in, do you not have it before?

Also what about fees?

Our deposit was paid before exchange then we had a completion statement sent through for the remainder

Damz

I've already paid fee's to the bank and have set money aside for lawyers fees. The £4k isn't there yet but will be on my next payslip.

My main concern was having nearly the entirety of my deposit being a gifted deposit however from what's been said above it doesn't seem like that'll be an issue. I'll go to the bank and get them to print off a transaction list and stamp it showing the gifted money (statement for this month has already been produced) and get a letter drafted and checked over by the solicitor, signed by parent and get it sent off to the bank along with the payslips.

finding it quite annoying that banks keep pushing paperless statements but the same bank asks for paper statements for their mortgages.

sallygreen30

I wasn't asked anything about the source of my savings which was gifted, with Barclays.