Mortgage worries / concerns. FTB. Gifted deposit

homewishes

Hi

I'm currently in the Mortgage process for my first house. I'm using HTB which has been approved. I took a gift from my Granddad of £6000 because he was insisting as hes done this for my cousins. Note I have savings to fund the 5% myself... Hunky dory until now but this is where it gets messy.

My granddad sent me 2 payments, one for £2 and then a second payment for £298. His daily limit to send money is £300. He used house loan and mortgage loan and references respectively! To add to this what i think is a messy situation he then sent the outstanding balance to my dad (£5700) who then forwarded it on to me. My dad then also sent £300.... On my statements it appears my dad sent £6000. I had my dad sign a gifted deposit form for £6000. Should I actually have my granddad signing one as well? Basically there is a legit money trail for money laundering checks. I just think there going to see money from my dad who then got it from granddad. What should I also do about the first payments where they say "loan". Send £300 back to him? He made an error... Got wording mixed up?

What are my options? Or don't proceed with the gifted option and fund myself. Will this raise questions with the lender?

Siggghhhhh.

davidmcn

It's the solicitor who needs satisfied for money-laundering purposes, so ask them, but they'll need to see the paper trail and ID for dad and granddad. If it's actually granddad gifting you the £6k then it's him who should be signing the letter. Probably can't do much now about the fact he called it a "loan", I wouldn't start transferring it back and forth now.

Lilla_D

Not only the solicitor, the lender will also want to see evidence of where the deposit came from, so you'll need the appropriate gift lender even for your mortgage application.
If you applied direct, clarify the exact requirements with the bank, while if you applied via a broker, they can confirm what's needed.
In any case, it's not the biggest mess on Earth, easy to set the record straight, so don't worry

homewishes

Thank you for your replies. My granddad doesn't have any id. ie driving license or in date passport... To proof his identity will he have to his photo taken and someone certify it? Like when your applying for a passport. He lives in a flat with a building manager....

Will the lender San... except grandparents?

davidmcn

homewishes wrote: »

Thank you for your replies. My granddad doesn't have any id. ie driving license or in date passport... To proof his identity will he have to his photo taken and someone certify it?

You'll need to ask your solicitor what they'll need.

Will the lender San... except grandparents?

Will they accept gifted deposits from grandparents? You should check this with the lender (or your broker) before you go much further. Some will, some won't.

Stillunsure

I wouldn't worry. I have gifted deposit and parents had to fill out a specific letter for solicitor.
As long as you can show the paper trail of money which you can should be fine