Gifted Deposit

BTTW001

im looking to buy my first home, in order to do this my parents would like to take out a personal loan and gift me the money, they are aware that this is a gift and are not expecting the money to be paid back or to have any rights over the house. Will a lender or solicitor question where the money has come from? will it be a issue coming from a loan if this is the case?

amnblog

No. As long as it is from legitimate means.

BTTW001

thankyou for your reply. which documents will my parents need to provide and how long will the funds need to have been in their account for before they can gift it to me

amnblog

Documentation will depend on the Lender and will be a letter, or completion of the Lender!!!8217;s Gift Form.

The money does not have to be in your Parents account for any period.

marmitemum

We have just gifted a deposit to my daughter and son in law. Their solicitor required a handwritten letter from us confirming it was a gift, plus personal and address ID, plus bank statement showing the money in there, plus a copy of paperwork confirming its source (in our case a lump sum pension payment)

foxy-stoat

BTTW001 wrote: »

im looking to buy my first home, in order to do this my parents would like to take out a personal loan and gift me the money, they are aware that this is a gift and are not expecting the money to be paid back or to have any rights over the house. Will a lender or solicitor question where the money has come from? will it be a issue coming from a loan if this is the case?

No idea if the funds coming from a personal loan will matter to your lender, it may be an issue with the loan company depending on the reason for the loan.

Good lucks and report back