Gifted deposit Halifax mortgage

SuboJvR

melissa1709 wrote: »

Thank you so much everyone for your replies. I had read previous posts where people had said the lender wanted further proof of deposit, I suppose I didn't realise it would only be for higher amounts of gifted deposit they would do this for.

My mortgage advisor has said the same thing, aslong as the letter states that they won't have any interest in the property and it is not repayable then they don't really care where the money comes from (obviously unless it was money laundering).

I haven't quite got to that stage with my solicitors yet as we have just started the mortgage application but it's good to know they will need the person gifting the money to go in with their passport.

Thank you very much everyone for your help

They don't need to go into the same solicitor, they can get it done locally as well and send you the copy then.

But again, it's not necessarily the lender that will want further evidence of deposit and it doesn't necessarily matter how much the amount is. It's not their responsibility to make sure the money has come from a legitimate source.

There's two parts to this:

1. Lender and solicitor want to check you actually have the money.
2. Solicitor is professionally obliged to ensure the money has come from a legitimate source, not from any dodgy dealings.

Lender is therefore quite happy with the letter. Lender will expect solicitor to check the latter.

I would prepare your grandfather for the likelihood of this, if solicitors are doing their job properly they will be checking the origins of the money.

Ithaca

It does seem a bit hit-and-miss. I've bought with gifted deposits twice (for much more than £6k-£7k) and never had to provide bank statements. Sounds like others have had different experiences, based on how their solicitors interpret the Money Laundering requirements.

SuboJvR

Ithaca wrote: »

It does seem a bit hit-and-miss. I've bought with gifted deposits twice (for much more than £6k-£7k) and never had to provide bank statements. Sounds like others have had different experiences, based on how their solicitors interpret the Money Laundering requirements.

Indeed. My solicitor wanted to see the trail of how we were going to pay their fees (circa £1500) plus other costs of moving...!

melissa1709

Thanks again everyone for your responses.

We went through solicitors forms last night and indeed you are all correct - 6 months of bank statements required.

Like I mentioned my grandad is ridiculously old school and to be honest most of his money is probably in cash anyway. My dad is now thinking of selling some of his shares to give us the £6k, this isn't a problem to him his share portfolio is quite impressive! But if they require his bank statements, the money won't have shown in his bank for the last 6 months!? Anyone come across this? Do you think they would accept a share portfolio statement with proof of the funds?

xylophone

It is perfectly reasonable for a parent to decide that he'll sell some shares to realise cash so that he can give his offspring a cash gift.

He'll have a contract note to prove the sale and the proceeds will appear in his bank account.

He can then give you the money and will be able to prove the source.

Your grandfather can give your father a present of the equivalent amount in due course.

SuboJvR

Selling the shares would make it easier/less intrusive - the evidence then becomes the evidence of the sale. And potentially one bank statement going in.

I'm in a similar boat except it's a pension commutation that my dad is getting to help us. I have shown them the letter confirming this and the amount, which also says the date it will go in. They haven't asked me (yet) for his bank statement showing it going in and I'm not sure they will at this point.

davidmcn

melissa1709 wrote: »

Do you think they would accept a share portfolio statement with proof of the funds?

Yes, this would be fine. Grandad's cash is a no-no.

melissa1709

Thanks everyone.

Spoke to our solicitor who said a copy of my dads share portfolio is fine, along with a copy of his bank statement showing the money going from his share account into his bank.

Looks like we will be ok after all!