Deposit for house.. can it affect my mortgage?

Pantobabe

Hi there,

I am in the process of just going to reserve a plot on a new build that has become available. Using the Help
To Buy the deposit I need to pay is £11,250. Around 6 months ago once I had saved £4000 I transferred this to a family member for her to keep safe for me (so I wasn’t tempted to dip into it) and I now need this transferred back to make my total savings in my bank £11,250, enough for the deposit.

I never thought that my family member transferring me
This money back would be a problem, but reading some posts on here, could it affect my ability to get a mortgage if they see the money transferred back into my account- will they question it? If so, how do I get around this?

I should add I have an agreement in principle already.

Thanks in advance!

samsam89

I'd imagine providing proof of the original transfer to your relative would be sufficient for the lender to see that it's not a gifted deposit. Failing that, the relative could just sign it off as gifted deposit and that it's not required to be paid back. Either way I'm not sure it's much to worry about.

Thrugelmir

Pantobabe wrote: »

I never thought that my family member transferring me
This money back would be a problem, but reading some posts on here, could it affect my ability to get a mortgage if they see the money transferred back into my account- will they question it? If so, how do I get around this?

Simply provide the evidence of the transfer that you made 6 months ago to prove the fact that it is yours. Straightforward enough.

axel132132

Either way you can get them to sign to say the 4000 they sent you back is a gift and they will not want it returned (if you cant get proof of transfers etc)

My father passed away and left my mum some money, she gave me £25k from inheritance to put as a deposit for my house.

She just signed to say it was gifted and it will legally be mine and she cant have it back basically

kingstreet

Pantobabe wrote: »

I should add I have an agreement in principle already

With whom?

enthusiasticsaver

It shouldn't affect your mortgage but for future reference this was not a good move. Supposing your family member had died or refused to pay it back? If you want to stick it somewhere it won't be touched put it in a fixed term deposit account.