Gifts for fees

Glw28

Hi

If my parents gift me money to pay my fees, stamp duty etc do I have to declare that or is that acceptable to mortgage companies?

AnotherJoe

I dont believe you do need to declare that. AFAIK they generally only ask for the source of the deposit not other funds.

However, if proof should be required by a pernicketty lender or solicitor, the worst you'll need is a letter from them about two lines long stating it is a gift.

Thrugelmir

Are you trying to hide something. Not advisable.

Glw28

No just receiving help from family and don't want my mortgage to be declined that's all!

stardust09

I would double-check with your mortgage lender. Nationwide require the parent(s) to fill in form for all Gifted Deposits over £10k. My solicitor also charges for checking the source of gifted deposits in some cases.

Due to money laundering regulations, sources of deposit are strictly scrutinised these days - your parents can't just put a significant sum of money in your bank account and that's that. Google Gifted Deposit (and the name of your mortgage lender) to see what I mean and check the rules. Nationwide have already asked me to confirm the source of three transactions between 10-20k whilst approving my mortgage (including 3 months of bank statements from the originating accounts), and they were only transferred between my name and my name accounts with no third parties involved.

Good luck with your purchase!

davidmcn

I doubt any lenders will care who is paying your fees (the standard CML instructions only talk about the balance of the price).

Solicitors may well insist on the usual anti-money-laundering checks for all money coming to them i.e. so they know who it's coming from, but as long as they can identify the source they shouldn't care whether it's from you or a relative.

downhillfast

We are in exactly the same position - we have saved enough for our deposit but our fees and stamp duty are being paid for by parents as a gift (proper gift not a loan in disguise!). I asked my mortgage broker about whether we would need any accompanying paperwork for this and his said as long as the deposit is from savings it's fine.