Deposit Verification

DFW240980

Hi - Just sold my house and used the proceeds to wipe out my remaining debt. We are planning on buying a new build through the help to buy scheme and need 16.5k deposit. I can save around 13k but possibly the full 16.5 depending on work bonus etc in 6 months which is roughly when the new property is ready. If we do have a short fall in the deposit come completion our parents will "gift" us the difference.

The question is do we need to declare that we may be receiving a partially gifted deposit and if so do we need to specify how much at the point we apply for the mortgage? Or can we simply top up our deposit with money from our parents on completion?

Thank you.

silvercar

Could your parents pay your estate agent fees from your house sale instead?

You could pay them back in 6 months time.

I doubt it is a big issue but some lenders may require it to be declared and it then becomes an issue.

davidmcn

It will need to be declared, your solicitor will check where the money came from. You can play safe and tell your lender you plan to receive more than you end up getting from parents at completion.

DFW240980

Thanks for replies, I'll have a chat with my broker when he returns from leave. The house builder is taking care of all fees for us so really the only thing left to pay by us is the deposit on completion, we just want to do the right thing ahead of time and not scupper things at the last minute.

Thrugelmir

A small gift to top up the deposit is unlikely to scupper your plans.