Gifted mortgage problem- solutions?

Retired_Mortgage_Adviser

I think you're going around in circles. My advice would be to not DIY this because (as you have seen) lenders approach gifted-deposits in different ways.

Talk to a decent broker.

Scot1969

The money is still in her account, from last July, but she has been told by the solicitor to transfer it back to me as it's no use as far as using for deposit. She also has £5000 from her sister. I've seen a few different answers as to how long money has to be in an account before its source no longer matters.

Scot1969

Thanks Retired Mortgage Advisor- I do feel this is a bit of a ridiculous situation to be in. It's just that last time there didn't seem to be a lot of choices for who would lend, based on her financial situation. I'm seeking out different opinions this time, and different ways of doing things as it went so badly wrong last time. I do feel the mortgage advisor badly let her down after saying my gifted deposit would be no problem.
If her family receiving money far enough in advance, and then helping her out when it came to the Spring/Summer wouldn't raise undue suspicion then that would be the answer to my money being unfairly refused. It's just whether or not this would raise different problems, and how they could be avoided! Certainly not the ideal way to do things though.

davidmcn

Scot1969 wrote: »

it's not like there's any dodgy dealing going on,

It is "dodgy dealing" - you're trying to come up with a contrived scheme to persuade the lender to advance money which they wouldn't if they knew what was really going on.

Scot1969

Well to me, the problem is that they DON'T know what is really going on- which is I am gifting the money, not lending, and I am having no interest in the property. They are obviously wary that it's either some sort of laundering, a loan, or that I will have an interest in the property, none of which are the case. This is what is so ridiculous, it's their suspicion that's making me behave in a suspicious way!

Retired_Mortgage_Adviser

You are unlikely to get any more helpful advice than this.

I get that your previous adviser appears to have placed your case with the wrong lender, so make sure you use a good broker this time, explain the circumstances of the gifted deposit clearly and then follow the advice given.



I would not recommend trying to send the money on a circutous route to seem like they came from someone else.

kingstreet wrote: »

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.

GrumpyDil

As the money is already in her account and will have been there for say 9 months by the time she comes to purchase in the spring are you even sure that questions will be asked about the source of the funds?

Just throwing this out there because that may result in a different view being taken of this now, particularly if you get a decent broker who can place this properly.

Scot1969

Thanks again. I'm really not keen on this plan, but if it made the likelihood of her actually getting the mortgage through this time, then I would go for it. I suppose I was hoping someone could just say that no, the bank wouldn't look that far back and that in-depth to money going between family members! Well, more than one person actually, if I was going to give it any credence!
An alternative plan is I get the money back, pay all her rent etc for next 6 months, and she saves every penny she earns meaning the deposit is actually from her own savings, plus a little help from blood-relatives.
Haha, I'm sure real life money laundering isn't as much hassle as this is proving to be!

Scot1969

Thanks for the input Grumpy. Yes I have considered this, I just can't seem to get an answer on how long money needs to be in an account before the source is no longer scrutinised. I've seen everything from 3 months (unlikely, surely) to 18 months.

getmore4less

Scot1969 wrote: »

The money is still in her account, from last July, but she has been told by the solicitor to transfer it back to me as it's no use as far as using for deposit. She also has £5000 from her sister. I've seen a few different answers as to how long money has to be in an account before its source no longer matters.

Moving it back is just highlighting it was not a gift.

She could have been spending that and saving from income to increase her own deposit money.