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Can my dad pay my house deposit?

Jonj123_2
Posts: 5 Forumite
Hi,
I am planning on buying a house on a 'buy to let' mortgage. My dad will be paying the deposit for me. Is he allowed to pay directly from his bank account or does he have to gift the money into my bank account first? Will there be any tax/legal implications?
Thanks!
I am planning on buying a house on a 'buy to let' mortgage. My dad will be paying the deposit for me. Is he allowed to pay directly from his bank account or does he have to gift the money into my bank account first? Will there be any tax/legal implications?
Thanks!
0
Comments
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Does your lender know the deposit is coming from your dad? If so then it doesn't really matter what route the money takes. Your solicitor will need to check the source of funds and your dad's ID.0
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Thanks. Is it a requirement to tell my lender whether the money comes from my account or my dad's? Would it make a difference to them? The money will go to my solicitor first anyway, no?0
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The solicitor will want to know where it comes from due to money laundering regulations and the lender will want to know as it affects your affordability and LTV amount, they may not want to advance the agreed amount with a borrowed deposit. You need to inform the lender / broker where the deposit is coming from at the very beginning of the application process.0
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Thanks. Is it a requirement to tell my lender whether the money comes from my account or my dad's? Would it make a difference to them? The money will go to my solicitor first anyway, no?
You will,have been asked for the source of your deposit, what did you say?0 -
Thanks. Is it a requirement to tell my lender whether the money comes from my account or my dad's? Would it make a difference to them?
Also, they will normally expect it to be a no-strings-attached gift to you, not some form of joint investment by your dad. If this is related to your other thread, I expect the lender may have problems if the plan is for your dad to live in the property.The money will go to my solicitor first anyway, no?0
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