Gift from parent pre mortgage application

Dribiddi

Hi,

I have savings of around £15k for mortgage deposit, all my own and am looking at applying soon.
Last month my dad gifted me £10k for getting married later this year. I have held some of it back for wedding and used some of it to pay off my credit cards to aid mortgage application. (He is fine with this I told him exactly how I would use the money)
He has since told me that although he has over £20k in the bank, the source of the gift to me was a personal loan as he likes having a reserve and has plentiful disposable income to service the loan (he is retired). He’s private with finances so if that’s what he wants to do fair enough, I’ve told him if ever it became an issue to service I would obviously help but I highly doubt that would happen.
I am aware that I need to declare any large deposits as per mortgage application. If lender drilled into the source of the £10k, would it pose a problem that it has come from loan funds?

Thanks

boo_star

I wouldn't have thought so.

The issue is going to be whether it is a loan or a gift. If it's a gift he'll need to write a letter stating such and will effectively relinquish any claim on the funds or the property going forward. If it's a loan then the mortgage company are going to take that into account.

I think he's absolutely nuts borrowing money to give to you when he has more than enough in savings though.

shadow7uk

You need to be open and honest with your solicitor and mortgage application about gifts. It will save time in the long run