Oversees source of gift

Locornwall

Sorry but I feel the need to come back to this thread.

I’m reading people simply get given money before an application by relatives and no declaration is made of it being a gift???

[Deleted User]

We were given £15k from my Australian in laws from their American bank 3 months before buying. Bought a house and showed our own bank statements only. The bank didn't ask about the money although I told our broker the in laws were helping us out but didn't evidence it.

haras_nosirrah

As brokers we are liable if there is money laundering and we haven't done the adequate checks required by the regulator

It isn't worth the risk

[Deleted User]

Quickly adding to this that overseas gifted deposits are generally fine but some lenders do have certain criteria points that can cause issues.
An example:

At the time the application is submitted, the deposit monies should have been held in a UK bank account for a minimum of 3 months.

Check with the lender you plan to use that they dont have any criteria point

davidmcn

Locornwall wrote: »

I’m reading people simply get given money before an application by relatives and no declaration is made of it being a gift???

That's either because:

(a) people are talking about transactions in the past when rules were less strict, or
(b) the professionals involved have been sloppy, or
(c) the gift was made long enough before the transaction that it wouldn't have shown up in the last 3 (or whatever) months' statements (if the money has been in your account for long enough then everyone will be entitled to assume it's really your money, and not some very slow money-laundering scheme)

Locornwall

But seriously, what is wrong with a close relative borrowing money and gifting this to me? No issues with money laundering then?

davidmcn

Locornwall wrote: »

But seriously, what is wrong with a close relative borrowing money and gifting this to me? No issues with money laundering then?

Who has said there would be anything wrong with it? It would be fine from a money-laundering point of view, though I could understand a lender being concerned that it would in fact be you meeting the relative's loan repayments.

haras_nosirrah

no issue with that at all

letter from relative
copy of loan agreement
bank statement showing loan money arriving

money laundering check done

Locornwall

Thanks. At least I have a solution now, although not ideal.

haras_nosirrah

from a brokers point of view sometimes it seems we need a moon on a stick but it is to protect ourselves.

If we get kicked off a lenders panel for something that we have missed then our careers can be over.

I know of a broker who was taken off halifax panel because the clients moved into the property after telling him it was a buy to let - as brokers we have to have evidence for what we are told as otherwise we are at risk.

missing money laundering can come with a prison sentence