Using money given as engagement gifts towards deposit

WaverT

Myself and my partner got engaged about a year ago and had a party to celebrate.  Family and friends gifted us money totalling around £2500 which we've never got round to putting into a bank account (foolishly it's sat in a drawer in our flat). We've been saving for a deposit off our wages and would like get this money into our bank account to go towards the deposit. This would make up around 10% of the total deposit. I assume we'll be asked about where this money came from by the lender/ solicitor but how would we go about proving it? Would we be expected to?

Thrugelmir

Perhaps progressively spend the cash and put more of your own traceable earnings into your savings accounts. 

dimbo61

I do hope you have a help to buy ISA or a Lifetime ISA ( LISA )
If not get one asap 

WaverT

dimbo61 said:

I do hope you have a help to buy ISA or a Lifetime ISA ( LISA )
If not get one asap 

I do. In fact we both have a HTB ISA.

WaverT

Thrugelmir said:

Perhaps progressively spend the cash and put more of your own traceable earnings into your savings accounts. 

Im already maximizing the amount of traceable earnings I can put away. Very little cash being spent in these times. Hoping to apply for a mortgage in the next few months so that injection of £2500 would really help. 

davidmcn

Bank it ASAP (this isn't the only reason why it's sensible not to keep large quantities of cash around the house!). You can't "prove" anything about cash deposits, you may as well have got it selling crack.

You haven't told us of your expected timescales, but often it's only the last few months of bank statements which people look at, and they assume if you've had the money that long then it's demonstrably yours rather than some money-laundering scam.

I would guess you're going to have more than £2500 of house-buying-related expenses over and above the deposit though, so may be safer to assume it's going towards those rather than the purchase price.

WaverT

davidmcn said:

Bank it ASAP (this isn't the only reason why it's sensible not to keep large quantities of cash around the house!). You can't "prove" anything about cash deposits, you may as well have got it selling crack.

You haven't told us of your expected timescales, but often it's only the last few months of bank statements which people look at, and they assume if you've had the money that long then it's demonstrably yours rather than some money-laundering scam.

I would guess you're going to have more than £2500 of house-buying-related expenses over and above the deposit though, so may be safer to assume it's going towards those rather than the purchase price.

Would I be correct in saying it's typically 3 months of back statements that need to be provided to the lender?

AnotherJoe

typically yes but yours may be one that wants six months or even a year. 

davidmcn

AnotherJoe said:

typically yes but yours may be one that wants six months or even a year. 

And your solicitor's requirements may be different from the lender.

lisyloo

How about telling the truth?

If it was £1 million then it might be different, but I doubt the bank are going to ask your relative to sign anything, they know that sometimes people forget or put money in a tin. If your explanation is honest and feasible then it should be fine.