How do I state where the deposit has come from?

Bongofish

Hi all!

My mum and dad have gave me £40k to get a property with a partner. We have had the cash in our account for the last 4 weeks. We have now found a house and in depths of the mortgage application with nationwide. We have passed the dip and gave the supporting documents that have all been passed etc etc.

The only thing we don’t get is the solicitor wants the last 3 months of the account where the money is coming from (which is my own savings account which I never used prior to this money going in). Will it be an issue that over 4 weeks ago there was £0 in this account and now there is £40k in the account. . The transfers show the money going in from my current account as that’s where my parents originally transferred the money.

Does this still class as coming from our own savings? As that’s what we have told nationwide where the funds are coming from?

And will the solicitors be fine with this?

Thanks guys!

Thrugelmir

Your solicitors will wish to see the source of funds. Declare the monies as a gift. Little point in attempting to deceive. As potentially could back fire. Financial relationships are built on trust. No trust no relationship.

Bongofish

But declare the money as a gift to who? Nationwide? The solicitor? My mum and dad are basically saying the money is yours, it!!!8217;s already a gift and in your savings now to buy a house. I!!!8217;m not trying to deceive but surely when my mum and dad transfer me money into my account that they can not get back it stands as gift to me already and it!!!8217;s up to me how I choose to spend that money? I choose to spend it on a house, I have cash that I want to use to buy a house and happily pay the bank, I have proven mine and my partners wage. The question on the form said !!!8216; will the deposit be coming from your savings!!!8217;. The answer has to be yes as that is where it!!!8217;s coming from?

Bongofish

I don!!!8217;t mind saying the money is a gift but really don!!!8217;t see the need in my Mum and dad having to fill out gift certificates and delaying the process when they have already happily transferred the money into my account?

ACG

It is a gift. I am not sure what else you would class it as.
It will only hold the process up if you send them 3 months bank statements showing £0 then £40k hitting your account as the solicitor will then go back to nationwide and make the lender aware who will then ask for a gifted deposit form.

If your mum gave you a jumper a month ago, when would it stop being a gift?

davidmcn

Bongofish wrote: »

But declare the money as a gift to who? Nationwide? The solicitor?

Both. Nationwide need to know that it isn't money you've saved up, it's a lump sum you've just been given. The solicitors need to check what the source of the money is for anti-money-laundering purposes.

Just to clarify, when the solicitors say they need 3 months of bank statements they mean a paper trail showing where the funds were 3 months ago - so they'll need statements from your parents' account (and probably ID for them too).