Mortgage/ Gifted deposit advice

bryan447

First time buyers

Me and my partner have had an offer accepted on a property for £150K. We have had our DIP/ AIG  from Nationwide on a 90% LTV.

Our £15k deposit consists of:

£5k own savings
£10k transfer from our parents which was transferred to our savings account in February 2020.

From my understanding Nationwide are only accepting 25% of the deposit being paid by a gift. 
Very frustrating considering their 85%LTV have no limits on the gifted deposit.

Please could anyone advise the chances of the mortgage getting accepted.

Would the 10k funds ever loose their gifted identity? 

Thankyou

haras_n0sirrah

The solicitor will need to verify the source of funds and would likely report to nationwide that it is a gift. Check with your solicitor but that is where it could come unstuck 

shakAFC

It’s been in your account since February, I would now class that as your savings?

SpiderLegs

shakAFC said:

It’s been in your account since February, I would now class that as your savings?

Are you suggesting the OP lies about the source of deposit?

FTB_society

solicitors and lenders only asked 3 months (or 6 months) bank statements, so if you received money from your parents or someones long time ago, lets say last year so... then  those are still gifted deposits ?

haras_n0sirrah

It depends how thorough the solicitor is going to be. Normally it wouldn't matter too much but where nationwide stipulate only 25% of the deposit can be gifted it has the potential to go wrong further down the road. 
A lump sum arriving 6 months ago from someone else isnt 'saving the money yourself' however you try to spin it. 

bryan447

Thankyou all for the comments. I am still not sure if to proceed the application or to withdraw my offer.

haras_n0sirrah

I would just ask the solicitor how long a deposit has to be in your account before it is considered your money. At least then you have an answer.

FTB_society

haras_n0sirrah said:

I would just ask the solicitor how long a deposit has to be in your account before it is considered your money. At least then you have an answer.

so this means, there is not a concrete rule, all depends on each solicitors ?

davidmcn

SpiderLegs said:

shakAFC said:

It’s been in your account since February, I would now class that as your savings?

Are you suggesting the OP lies about the source of deposit?

I would say it depends on whether the gift was given in contemplation of the borrower using it for a property purchase. You need to draw the line somewhere, otherwise what do you do - declare every monetary gift you've ever had?

davidmcn

FTB_society said:

haras_n0sirrah said:

I would just ask the solicitor how long a deposit has to be in your account before it is considered your money. At least then you have an answer.

so this means, there is not a concrete rule, all depends on each solicitors ?

Correct. 3 months is a typical length of time, but could be longer.