Do I need to declare old cash gift to lender after mortgage offer?

mawrgagedff

My partner and I are both FTB, with an offer accepted on a property, conveyancers instructed, and have had a mortgage offer (Nationwide).

We have a 15% deposit of £31,500, which we declared at application as coming from savings.

However, it has since dawned on me that my partner received £5,000 as a cash gift from her parents back in August 2020, about 6 months before the mortgage was applied for. (There was no expectation about using it towards a deposit; it was just a gift.)

My solicitor recently requested source of deposit info for the conveyancing process, and I asked whether this cash gift counted as a gift or as savings. The solicitor didn’t seem too concerned, told us to enter it as savings as it was a while ago and said they wouldn’t be particularly interested in seeing statements older than 3 months, so I relaxed a little.

But I’m wondering whether we ought to go back to Nationwide now, after we have had a mortgage offer accepted, to explain that the deposit might actually partially be made up (less than 16%) of cash derived from a gift 6 months ago? Or just relax and leave it alone as our solicitor 1. knows about it and 2. doesn’t seem too bothered.

I can see on the Nationwide website that they perhaps only require a letter for gifts over £10,000, but my concern is that as we originally declared it as savings (possibly mistakenly) Nationwide will at this later stage be miffed/spooked, and withdraw mortgage offer, etc.

davidmcn

If it was just a "normal" gift, rather than related to the house purchase, I would just treat it as savings. Would only be an issue if the solicitor was jumping up and down about it.

stevenbecca

don't create a problem where one doesn't already exist, if they only request 3m statements anything before that is irrelevant 

MWT

Be guided by your solicitor, if he is relaxed then you should be too.