Gifted deposit advice

dickibobboy

So i've recently applied for a mortgage through a broker and had an offer accepted on a house. The broker has asked me about my deposit but is waiting to see what documentation is needed. My solicitor has sent me the paperwork through and also mentioned deposit information.

The money for the deposit of the property and improvements has been gave by my family members into my bank. One amount from one relative covers the deposit gift with some to spare and another family member has given a reasonable amount so i can use for doing up once i purchase.

I'm now worried about what they will see as the deposit source, over half has been saved by me and i've recently moved it back into my main account with the rest.

How can they determine which part has come from which family member? One of them covers it all but i only needed a small amount to top up my own the rest is extra.

The main contributor(mother) carried out a bank transfer to me and i understand they sometimes like to see the gifters bank statements which is where my next issue comes in.

My mum is old fashioned and saves money in cash, we recently talked her out of keeping so much cash in the house so opened a new account and deposited it in so it was safe. This was only a couple of months ago now, technically she can't show how that money was obtained just that it was cash placed in.

Can anyone offer any advice before i speak to the solicitors next week about it as it is really worrying me and i'm not sure if it should be or not!

Thanks

da_rule

As you say, your solicitor will want to see the source of funds. So you'll have to produce your bank statements showing the transfers and the people who have given you the gifts will also have to produce a statement.

When we had a gifted deposit they only asked for 2 months statements from the person who gave us a gift. If she really can't prove where the money has come from it'll be a decision for the solicitor and potentially the lender. The solicitor may accept a statement of truth (a declaration saying where the money has come from and that she used to save all her money as cash and has only just opened a bank account etc).

Both of the people who have given you money may also have to sign a gifted deposit form from your lender saying that they don't have an interest in the house.

Just be open and honest about your solicitor, I'm sure they'll have a solution for you.

dickibobboy

da_rule wrote: »

As you say, your solicitor will want to see the source of funds. So you'll have to produce your bank statements showing the transfers and the people who have given you the gifts will also have to produce a statement.

When we had a gifted deposit they only asked for 2 months statements from the person who gave us a gift. If she really can't prove where the money has come from it'll be a decision for the solicitor and potentially the lender. The solicitor may accept a statement of truth (a declaration saying where the money has come from and that she used to save all her money as cash and has only just opened a bank account etc).

Both of the people who have given you money may also have to sign a gifted deposit form from your lender saying that they don't have an interest in the house.

Just be open and honest about your solicitor, I'm sure they'll have a solution for you.

Hi, thank you for your reply. I've had a think about it and looking at my funds the amount my mother transferred to me doesn't actually matter as i have since saved that amount myself to cover it. Hopefully i can just say that they were my savings for the deposit and the other family members contribution gift. The money my mother transferred should hopefully be irrelivant.