Gifting deposit

mistree

Hi everyone, hoping someone can advise. Have submitted full mortgage application last week, valuation booked in Wednesday, hoping to hear back shortly after fingers crossed. FTB if that makes a difference.

Have been given a load of forms to complete for the conveyancing and one of them is asking for the source of our deposit. There are several options to select, the top one being a gifted deposit. Part of our deposit was gifted - total 32k deposit and both me and my partner received 4K each from a family member. The 4K went into our LISA accounts last month, both transferred from our own bank accounts after the gifted money was transferred to our bank accounts by the givers if that makes sense. For the source of deposit do I just say the full 32k is in our LISAs or do they want to know if it was gifted, even historically? I’m slightly confused about the purpose of this!

davidmcn

How long ago was the money gifted?

mistree

Beginning of July for both of us. It does allow us to state multiple sources but not sure why they’re asking - for money laundering, proof of deposit or for the eventual transfer.. if I knew why I think I’d understand the question!

Thrugelmir

The source is what matters. Declare the gifted funds as such.

Given the amounts involved shouldn't be an issue in any event.

amnblog

Money Laundering Rules.

If 8K suddenly arrives in your Account they need to satisfy themselves where it came from. The Law require them to establish it came from a legitimate source.

For similar reasons the Lender asks for the source of deposit funds. The Lender is also concerned that a ‘gift’ is a true gift.

mistree

Okay thanks, will advise it was gifted and see what’s advised.