Overpayments and Gifts

Istinne

Hi Everyone


My partner and I completed on the purchase of our first home at the end of November.



My grandparents have offered us a lump sum to put toward overpaying out mortgage and we can overpay up to 10% per year.



My issue is whether or not we will need to provide anything to the mortgage lender (Barclays) when ringing to overpay, for example a letter of gift, given that it hasn't been long since we bought the house.


Thanks

[Deleted User]

No. .

dimbo61

If your grandparents pay the lump sum into your account just ask them to provide a letter stating that the lump sum is a Gift.
They can gift £3,000 each in any one tax year so Now and again in April

davidmcn

dimbo61 wrote: »

They can gift £3,000 each in any one tax year so Now and again in April

They can of course gift more than that if they want, the only relevance is that if they die within seven years of the gift then the amount (over that limit) will be taken into account for Inheritance Tax purposes.