Unusual gift deposit

meachybee

We have been gifted a deposit from my brother in law but unbeknownst to us he gives all his money to his mother in law to save (so he's not tempted to spend it) so the money has come from an account in her name. He can prove he pays the money into the account but I'm not sure who we should say the gift has come from? Will this hamper us getting a deposit?

[Deleted User]

Sounds incredibly odd to me ! He has enough disposable income to be able to give a substantial amount of money away but is incapable of saving it himself and needs his mother in law to hold it to stop him spending it ? 

chillicheesedog

I think it's best to speak to your solicitor about it and ask them what to do. Usually a letter stating they won't have any stake in the house should suffice but if they were to ask to see proof of how your brother in law has amassed the money, obviously he has to show it. 

Thrugelmir

Your BIL may not be an acceptable source even without confirmation of the originating source. Check the lenders criteria.  

cooltt

meachybee said:

We have been gifted a deposit from my brother in law but unbeknownst to us he gives all his money to his mother in law to save (so he's not tempted to spend it) so the money has come from an account in her name. He can prove he pays the money into the account but I'm not sure who we should say the gift has come from? Will this hamper us getting a deposit?

I'd suggest what your BIL is doing fits in very nicely with what a lender would look for with regards to money laundering. Passing via several accounts before it gets to you? Nothing suspicious at all with that. lol.
He would be far better off putting it into one of the rubbish low interest ISA's that you can't touch for 600 years. 

[Deleted User]

The deposit will most likely be assessed as coming from whoevers account it was in prior to it being given for this purchase. 

So who is that person to you?

If it's not a direct blood relative then most lenders won't allow it

meachybee

Shes not a blood relative so we've declined the gift and we'll give the money back. My dad is going to give us the gift instead. Thanks for your help.