Gifted mortgage problem- solutions?

Scot1969

Hello everyone-
I gifted my partner £15,000 for her mortgage deposit earlier this year, being advised by her mortgage advisor that this would be no problem. It ended up being a huge problem in as much as the bank would not accept my money despite it being clear there was no laundering going on, and my signing forms stating it was a gift. She ended up losing the flat she was buying and dealing with all the fall out that ensued.
She is going to try again in the Spring and I'm looking for advice on how to avoid all the troubles of last time.
Her sister has been able to give £5000, which has already been transferred, but she would like to have the full £15000 again to give her more options. Her family MAY be able to scrape together the rest, but with some hardship. It seems utterly ridiculous that I can't help her out here and that her family have to struggle to get the money when I have it sitting ready to go. I should mention that the sister lives and works in the USA and the family are in Poland. Another sister lives in England.
So what I'm wondering is, can i transfer the money to another sister (USA or England) who then gives it to the parents, who then give it to my partner? It's like anti-money laundering safeguards are forcing me to behave like a money launderer! This could all be done straight away so by the time she goes for the mortgage the money will have been in her account for over 3 months.
So really, what I'm wondering is, I know the bank will look at where my partner got the money, but will they also look at where her parents got the money, and even one stage further, where their other daughter got the money? The whole thing seems ridiculous, but I understand money laundering rules need to be in place, though equally, I am not a money launderer and have the money to give (not loan).
Any thoughts? The last attempt was a disaster, finding out with 7 days notice that the bank wouldn't accept my gifted deposit, so I would really like to avoid problems the next time.
Thank you very much for any help!

davidmcn

Scot1969 wrote: »

I know the bank will look at where my partner got the money, but will they also look at where her parents got the money, and even one stage further, where their daughter got the money?

If they've got any sense, yes. Or rather, the solicitor will.

Any thoughts?

Your partner might want to avoid being flagged as having made a fraudulent mortgage application.

kingstreet

Where will you be living?

Thrugelmir

Scot1969 wrote: »

I gifted my partner £15,000 for her mortgage deposit earlier this year,

Why are you gifting and not lending. You may never see the money again.

Scot1969

Thanks for the reply.
The thing is, what is to stop me giving my money to whoever I please, and for them to then give their money to whoever they please? I realise we are in legal territory, which doesn't mean it actually has to make any sense �� But if I give some money to her sister, and she decides to give some money to her parents, who then decide to help a daughter out with a deposit then it surely isn't fraud. It's just more the problem of falling foul of the bank being wary of money laundering. I am not money laundering, of course, but that made no difference last time.
This would actually count as a fraudulent mortgage application?

Scot1969

I will be living in my own place, which is bought and fully paid for.
The money is a gift, not a loan. It would need to be a gift anyway, as far as the bank is concerned, and I signed a letter saying as much last time. Still got refused though.
Thanks for all replies.

[Deleted User]

Scot1969 wrote: »

But if I give some money to her sister, and she decides to give some money to her parents, who then decide to help a daughter out with a deposit then it surely isn't fraud.

If that was what was actually happening, then you would be right. But of course it isn't because you've already planned out these coincidental transactions.

Hence it isn't 'surely' not fraud.

Scot1969

Well, it's up to them to pass on the money as they see fit. They may decide to just keep it, haha. The deposit will come from her parents ultimately.

[Deleted User]

Great. Then you just need to let the lender know that when they trace back the funds to source and as long as they buy it, all is good.

kingstreet

She is going to try again in the Spring and I'm looking for advice on how to avoid all the troubles of last time.

The mortgage should be placed with a lender which accepts gifts from non-blood relatives. There are a good few and any decent broker knows who they are, or can find them quickly by checking criteria.

My quick search yielded seventeen who would and another four who would consider.

Retired_Mortgage_Adviser

It all seems unncessarily complicated. Just talk to a good whole of market broker, explain the circumstances and he/she will guide you on how to proceed and what lender would be best suited.