Gifted mortgage deposit using an unsecured personal loan

sean_silva

Appreciate any feedback on this please.

I have just submitted joint mortgage application along with my spouse to Halifax via a mortgage broker.

I have my deposit covered but going to get a gift (about £ 10K) from my brother to cover stamp duty and other costs which may incur during the process. However my brother source this gift deposit via an unsecured personal loan.

We submitted a standard letter from my brother declaring he has no interest on the property or repayments. He is OK to repay the loan by himself. [generous]

1. Will this impact the decision of mortgage application?
2. What's the solicitor's approach to these kinda situations? Are they drill down my brothers financial affairs and make any impact on outcome?
3. Do we need to provide my brother's bank statement, etc to solicitors at the very beginning of the process?

foxy-stoat

If the £10K is to cover stamp duty and moving costs then the lender wont care - the solicitors might though.


For all answers, ask your broker and solicitor.


Good luck

AnotherJoe

Your title says "unsecured personal loan".
Your text says "gift deed"

A loan is not a gift.

Your title says "mortgage deposit"
Your text says "stamp duty and other costs"

A mortgage deposit is not stamp duty.

If you use these terms as sloppily in your application you may well find your application being bounced. A poster here not so long ago has his declined because a relative gave them some money but called it a loan on the transfer into his bank account.

sean_silva

@AnotherJoe - you made a good point. Thanks for the constructive feedback. appreciated. Unfortunately I cannot edit the title, but I have reviewed and edited the body.

kingstreet

A gifted deposit is fine.

It doesn't matter what it's being used for.