Gifted deposit - reasonable request?

Fazzy123

Hi,

Hoping someone can provide me with some advice and assurance in my current situation. 

I am currently in the process of remortgaging my property to raise capital for an investment property. The deposit for the investment property will be £200k and I am able to raise a maximum of £175k from remortgaging. 

I will be receiving the remaining £25k from from my brother and sister. My mortgage broker has requested for a gifted deposit form to be completed and 3 months bank statements for both my brother and sister to be provided. I have never been in this situation so just wanted to know if this was a normal request?

Thank you in advance for any advice/help/assurance!

Caz3121

Money Laundering checks. I provided a deposit for my daughter and was required to sign a letter confirming that this was a gift and not a loan (it was) and provide bank statements / evidence of source of the funds.

user1977

Yes, perfectly standard. 

Fazzy123

Caz3121 said:

Money Laundering checks. I provided a deposit for my daughter and was required to sign a letter confirming that this was a gift and not a loan (it was) and provide bank statements / evidence of source of the funds.

Thank you for your reply and assuring me it’s normal! I have done this previously but was only asked to sign the gifted deposit letter however this was many years ago. 

I assumed the solicitors would have been asking for this but good to see lenders checking everything properly too. Thanks

[Deleted User]

Everyone in the transaction will be held liable if they are found to have failed to spot money laundering.  This usually ends up with various people asking for the same documents.

On one hand you can think 'well the solicitor will be checking all that so the mortgage broker doesn't need to', but in reality everyone will just be covering their backsides to ensure they aren't on the hook for a financial penalty