Inheritance but lender wants confirmation it’s not a gifted deposit

GN2020

Hi everyone,

My partner and I have an application going through with nationwide at the moment (8 weeks and counting...)

My father passed away 10 months ago and his house was sold. 

My mam and dad were separated but they never divorced, dad died without a will so under intestacy laws, the house went to my mam. 

The house has been sold and split equally amongst me and my siblings.  

We didn’t get probate as there was nothing complicated or challenging about dads estate and we decided between us that we would handle it ourselves. 

I received my share of inheritance, some of which is being used for a deposit for a house we intend to buy. 

Nationwide have been told there was no will, nor was there any probate so our broker has asked me for a copy of the conveyancing solicitors letter documenting the sale and to get my mam to write a letter saying that every penny of the money has come from inheritance from my dads estate, it’s not a loan, it’s not a gift (as in it’s not from money she saved up/won etc) and it literally came from my dads house, went into her account then transferred to mine the same day, but I’ve been told they may or may not accept it. 

What on earth can I do about this other than my mam writing a letter saying that it is inheritance money? 

I have no idea if this classed as a gifted deposit due to the fact that it came from the fact my dad passed and we sold his house. 

This is all really bothering me now. 

ACG

I think under the circumstances this is a gift from your mum. 

Thrugelmir

All you need to do is provide the information that the mortgage broker advised. The lender can decide whether is acceptable evidence. The documentation relating to the property sale should be straightforward enough to obtain. 

foxy-stoat

Agreed with ACG, this isn't your inheritance as the cash was your Mam's and would be classed as a gift.

Chop-D

If they do consider it a gifted deposit (even if it isn’t actually!), you may just need to get your mam to fill in a form saying that she doesn’t expect the money to be paid back. We’ve had to do this recently but it was with another lender so you would need to ask your broker if you could fill out a gifted deposit form instead if you need a plan B

GN2020

ACG said:

I think under the circumstances this is a gift from your mum. 

Thank you, I do appreciate your honesty. 

I guess all I can do is see what they say, our broker has said if they don’t accept it there’ll be other lenders we can be placed with. 

It’s just frustrating after all this time is all. 

foxy-stoat

OP probably confused matters by stating it was part their inheritance when it wasn't.

GN2020

Thrugelmir said:

All you need to do is provide the information that the mortgage broker advised. The lender can decide whether is acceptable evidence. The documentation relating to the property sale should be straightforward enough to obtain. 

Luckily I’ve got the documents from the conveyancing solicitor, just have to hope that they accept it. If not, he said there are other lenders that will be fine with it. 

Thank you for your honesty 😊

GN2020

foxy-stoat said:

Agreed with ACG, this isn't your inheritance as the cash was your Mam's and would be classed as a gift.

Thank you for your honesty, I do like these forums as people are very honest, I’m not a fan of being mollycoddled 🤣
Guess all I can do is see what they say 😊

GN2020

Chop-D said:

If they do consider it a gifted deposit (even if it isn’t actually!), you may just need to get your mam to fill in a form saying that she doesn’t expect the money to be paid back. We’ve had to do this recently but it was with another lender so you would need to ask your broker if you could fill out a gifted deposit form instead if you need a plan B

Unfortunately Nationwide aren’t accepting gifted deposits over a certain amount, it’s fair enough I guess, they’re being strict in the current climate. 

Our broker has already got another lender or two in mind just in case they don’t accept it. 

ACG

If they do not accept it as inheritance, is there a problem with changing it to a gift and getting a letter form your mum to say it is a gift? 

Personally, I would probably just ask them to re-label it as a gift and hope it does not affect the scoring of the application too much. Assuming your mum is not about to go in to a care home or doesnt look like she will be for some years, I cant see it making too much difference - but I suppose that is for you and your broker to discuss with the solicitor maybe. 

I dont mean to have a dig at the broker, but is he/she not discussing this with you?