Change in gifted deposit after mortgage offer

Jfc85

We had our mortgage offer and we stated and proved the £20K gifted deposit from my parents, however since getting our offer my partner's inheritance from his grandad passing is now available and his grandma also wanted to gift us £3k towards our house. This is lovely and definitely helps us out but neither the inheritance or gift from his grandma was declared at the point of offer. What do we do now, we will get his grandma to fill out the necessary form and get a letter from his grandad's solicitors to prove the inheritance but do we need to go back to our broker so this can be declared with our lender? Or do we get the forms ready and only show them if they ask? We don't really want to have to go through the progress of getting a new offer as we are quite close to completion but if further checks happened money has gone into my partners account that we can prove comes from a valid source but we just want to know if we do have to make the effort to declare it now or just wait?

user1977

I would expect your lender has only approved a specific amount and source for the gifted deposit (and your solicitor will need to confirm that what they're getting matches up with that), so if you want to change the amount (or add another source) then the first step would be to ask the lender if they'll accept that.

kingstreet

Are you changing the deposit/mortgage amounts? If not, there is no need to report to the lender as there is no material change.

GeordieGeorge

I think it’ll be far easier if you keep the extra and make an overpayment in a month or so, or even just use it as your emergency fund.

If you change details on the mortgage it’s an unnecessary pain all round.

pinkteapot

GeordieGeorge said:

I think it’ll be far easier if you keep the extra and make an overpayment in a month or so, or even just use it as your emergency fund.

If you change details on the mortgage it’s an unnecessary pain all round.

Came here to say exactly the same thing. Unless the additional deposit is massively more than your limit on overpayments?

getmore4less

Will the extra money change the LTV to get a better rate?

Could end up being a lot of money if you have gone for a longish fix like 5years
.

AnotherJoe

What is your LTV?

If it was substantially less (would this money make a difference, £3k from grandma is unlikely to make any odds?) would you get a better rate?

If not, pay some lump sums off (up to the max per year to avoid ERC) as you go.

 

Drawingaline

Use the 3k for moving costs. How much is the inheritance and will it change the LTV. If not then as others have said use it to overpay the mortgage once in.

FaceHead

Agree that you should avoid mentioning it to the lender, and the solicitor too. As you had the application approved before the gifts, it sounds like you can complete the purchase by your own means. The gifts can be spent on stamp duty, moving costs etc. and any unnecessary paperwork can be avoided. 

tinytiddles

A bit different in our case but happened after the mortgage offer came through - we had stamp duty paid as a builder’s incentive so when the holiday came in the developer offered us a deposit contribution instead. It was really easy to sort and was all done by the solicitor. We felt that if they said they wouldn’t accept it we hadn’t really changed our position financially so thought we would try our luck. The lender was fine with it, as they tend to be if you’re upfront about things. 

Jfc85

kingstreet said:

Are you changing the deposit/mortgage amounts? If not, there is no need to report to the lender as there is no material change.

No the deposit and mortgage amounts remain the same. It’s just if our lender did another check of our bank accounts before completion they would see these new deposits so we weren’t sure if it was best to declare them now in case that happens! Same with solicitors, we gave them a breakdown of our deposit before with a previous gifted deposit form from my parents so she also wouldn’t be aware of these new payments but would the solicitor do further checks? I don’t know if I’m just worrying about nothing?