Mortgage deposit

Nico666

Hi,

Just have a question. So I have some funds in premium bonds, but also created one for my son.

I've had this for sometime, but have now closed his bond and transferred this across to mine as things have changed and we need a bigger house. 

So currently it shows that the whole bond is in my name. Would this be sufficient for a deposit. It does on the bond record show with credit etc with new bond numbers. 

Kind regards 
N

MWT

How old is your son and when did the transfer take place?

Nico666

Thx, son Is 14 and transferred his bond back to me a couple of days ago.  

MWT

This is likely to be a problem, as when you opened the account in his name and transferred the money into his account that is deemed to be a gift, so the money became his and not yours.

As he is under 16 he is not considered to be able to operate the account independently and you are acting for him to manage his money, so you can't just take it back.

Talk to your solicitor as with the funds only appearing in your account a couple of days ago there are going to be questions about the source, and this has been an issue for some in the past...

https://forums.moneysavingexpert.com/discussion/6335878/deposit-on-childrens-nsi-premium-bonds/

Nico666

Thank you, so the funds actually transferred back to me as premium bonds and not a bank account so still with nsandi. So just means my bond value has increased.  Currently saving towards a deposit so not involved with a sol at this stage.  

I could suppose close off the whole thing and just keep in savings account if needed. 

MWT

How long do you think it will be before you are ready to proceed with  purchase?

Nico666

Unsure, but could be 6 months or poss next year.  But just want to make sure when I'm ready there should be no issues.  

MWT

Nico666 said:

Unsure, but could be 6 months or poss next year.  But just want to make sure when I'm ready there should be no issues.  

You are passed the point where you can have certainty of no issues as you can't undo what was incorrectly done, the source of your funds now includes money you had gifted to your minor child.

You can certainly minimise the risks of it being obvious what has happened by having the money in one account for as long as possible before it is required, but how you answer when asked about the source is up to you in the end...

Nico666

Thank you for taking the time here.  Much appreciated