HELP - First timer buyer Gifted Deposit

euphoriik

Long time lurker but needing some help, I’ve got my Agreement In Principle with NatWest and uploaded everything to DigiDocs and paid my first instalment to my Solicitor but I’ve just realised - I’m sure NatWest never asked about a gifted deposit which I have got £1000 of my £4000 deposit gifted from my grandparents. 

I have emailed my solicitor but they are off and I have no idea what to do and now I’m panicking thinking I’ve completely messed up! Should I call NatWest?

I can get all the relevant letters needed for NatWest/my Solicitor but I’m so worried! 

diystarter7

I'm sure no one is to bother re 1k gift, I'm sure they won't.

The people that may pick up is your bank if you get money coming in and out that looks, suspect.

Brie

RBS weren't concerned about the £10k gift we had (our whole deposit) when we first bought a place about 20 years back.  But things have changed.

When we moved and remortgaged 4 years back they insisted on a letter from MiL for much more substantial gift she was giving us. But that's because rules have changed for banking and the gift was about the same size as the actual mortgage. 

I don't honestly think that £1k will be an issue for any bank. 

euphoriik

Thank you both, first time nerves I suppose! Either way I have informed my solicitor to ask if I need to give a letter etc for the money, I’m assuming they will contact NatWest and sort it out for me? 

Slithery

diystarter7 said:

I'm sure no one is to bother re 1k gift, I'm sure they won't.

The people that may pick up is your bank if you get money coming in and out that looks, suspect.

Yet again you are showing your ignorance of the legal process. Gifted deposits always have to be declared to lenders for their approval and the relevant paperwork needs to be filled in. Also a bank won't care about such a small amount if it's been transferred from a different account - they care more about things such as massive cash deposits.

euphoriik said:

I’m sure NatWest never asked about a gifted deposit which I have got £1000 of my £4000 deposit gifted from my grandparents.

It wasn't up to NatWest to ask - It was your responsibility to tell them. If you applied directly to NatWest then you should contact them and let them know ASAP. If you went through a broker and they were aware of the gift then they should have already told them.

Another option would be to not use the £1k as part of the deposit but instead use all of your own money and spend the gifted £1k on your solicitors fees.

euphoriik

Slithery said:

diystarter7 said:

I'm sure no one is to bother re 1k gift, I'm sure they won't.

The people that may pick up is your bank if you get money coming in and out that looks, suspect.

Yet again you are showing your ignorance of the legal process. Gifted deposits always have to be declared to lenders for their approval and the relevant paperwork needs to be filled in. Also a bank won't care about such a small amount if it's been transferred from a different account - they care more about things such as massive cash deposits.

euphoriik said:

I’m sure NatWest never asked about a gifted deposit which I have got £1000 of my £4000 deposit gifted from my grandparents.

It wasn't up to NatWest to ask - It was your responsibility to tell them. If you applied directly to NatWest then you should contact them and let them know ASAP. If you went through a broker and they were aware of the gift then they should have already told them.

Another option would be to not use the £1k as part of the deposit but instead use all of your own money and spend the gifted £1k on your solicitors fees.

When I say they didn’t ask I was saying that during the process of the online application I can’t remember there being a part of the application for me to let them know, I’ll ring NatWest today as a precaution though just to inform them and go from there. 

TBG01

If you've told your Solicitor there's a gift, and there's no mention of it in the mortgage offer, they'll inform the lender for you.

kingstreet

Source of deposit is a mandatory requirement on a broker application and NatWest may request the documentation during the application process.

However, it may include evidence requirement in the solicitor instructions for post-offer matters if it isn't required up-front.

Brie

Seriously - don't panic.  

But I do suggest you get a letter from the elderlies to cover you in case you need it.

To whom it may concern:

We the undersigned do fully gift the sum of £1,000.00 to <your name> to use towards the deposit of buying <address>.

We confirm that this is an outright gift and we will not hold any portion to be repaid or retain any benefit in the property itself.  

signed & dated

Or something like that.

MaiTai

diystarter7 said:

I'm sure no one is to bother re 1k gift, I'm sure they won't.

The people that may pick up is your bank if you get money coming in and out that looks, suspect.

Take this advice on board at your peril.

As usual,from this particular individual,it is well wide of the mark demonstrating their complete lack of understanding of the legal principles involved in conveyancing.

 

euphoriik

Just an update, I rang NatWest and spoke to them, they’ve added a note to my mortgage application so when it is reviewed the person reviewing it will see how much is a gift and if they need proof they will then request it from my digidocs

so turns out I was worried over very little and a quick phone call sorted it! ☺️