Gifted Deposit

S_C_

Looking for advice on a Gifted deposit please.

We will be gifted around £8k of our deposit from a family member. The family member will be getting a loan for this, but is willing to gift us the money without any need for us to repay and will sign a letter confirming this.

Looking to find out if this would be ok with the lender or would there be any issues?

JellyphantCastle

With our gifted deposit of a similar value, our solicitor has carried out pretty extensive anti money laundering checks on the person gifting us. Part of this was them having to state how they themselves got the money (through savings, investments etc) and show 6 months bank statements to demonstrate how the money came to be. 

My solicitor might be over-zealous with the regs and your lender might not mind that the person gifting you has take a loan to get the money, but just a heads up to you that the lender (or broker, or both) may ask a few questions around the arrangement. Your gifter would also have to state in the letter that they will make no claim over the property, and possibly confirm if the loan is unsecured or secured against their own assets. 

(New to this myself to might be talking nonsense but thought my experience might help!)

Thrugelmir

The lender could well assume that is simply an attempt to circumnavigate their requirements and not accept your word at face value. i.e. you have an unofficial arrangement with the family member. As lying (committing fraud) isn't that unusual. 

K_S

S_C_ said:

Looking for advice on a Gifted deposit please.

We will be gifted around £8k of our deposit from a family member. The family member will be getting a loan for this, but is willing to gift us the money without any need for us to repay and will sign a letter confirming this.

Looking to find out if this would be ok with the lender or would there be any issues?

@s_c_ Can't comment on your specific case but I've done cases where the original source of the gifted deposit has been a loan (secured and unsecured) taken out by a parent, not been a problem as far as I know.

kingstreet

K_S said:

S_C_ said:

Looking for advice on a Gifted deposit please.

We will be gifted around £8k of our deposit from a family member. The family member will be getting a loan for this, but is willing to gift us the money without any need for us to repay and will sign a letter confirming this.

Looking to find out if this would be ok with the lender or would there be any issues?

@s_c_ Can't comment on your specific case but I've done cases where the original source of the gifted deposit has been a loan (secured and unsecured) taken out by a parent, not been a problem as far as I know.

Seconded.

S_C_

Thanks everyone for the advice and pas experience!