Gifted deposit source

mrfirsttimebuyer

Hello,

Would the source of my gifted deposit be a concearn to lenders?

My Sister has taken a mortgage on her property to give me £80k, she will sign paperwork declaring gift and no interest in my property, I am wondering if this would be an issue?

davidmcn

Not generally I think, though sometimes a loan in the background raises suspicion that you'll be funding the repayments rather than her generously doing that from her own resources - it's a bit different from e.g. parents having cash gathering dust in a savings account.

mrfirsttimebuyer

She was left the family house after our mother passed 10 years ago, at that time I was not in need of my "share", she has resided 10 years mortgage free, now I have young family and need a house.

Cscott139

That should be absolutely fine. Its not a gift or a loan its her buying your share of the family home from you so it shouldn't cause any issues. You will need to explain it to the lender but it should be fairly straight forward.

monz

It is completely fine. My mum and dad had to sign a declaration stating it is a gift etc and do not want it back. There was no hassle and was done through solicitors

Tonib82

Sorry to jump on this were you asked to get IID and bank statements covering 3 months from the person giving you the deposit. We've been asked for everything bar his inside leg measurements