Gifted deposits

secla

Just a quick question to ease my mind.

we had out mortgage offer through 4 months or so which consisted of a partial gifted deposit with the gifted deposit form etc filled in etc.
the process has been a bit drawn out but I think everything has been answered now, this week we had to submit documents for money laundering checks (which seems quite late in the day) but the solicitor has said all is ok with them and there now waiting to hear back from the lender.

do the lender have to go through the paperwork as well or just confirm the gift is ok ? We’re getting a bit tight on time with the mortgage offer now and the gifted is going on holiday at the end of the week so I’d prefer no delays

Brie

The lender will want to see the paperwork about the gifted deposit which presumably will state that the ££ is a gift and that they will make no claim at any point on the property.  Simply the bank doesn't want someone popping up and saying "No that £20k I gave secla was a loan not a gift!"  Obviously this would only be an issue if you end up selling the place for less than the amount outstanding on the mortgage which hopefully won't happen.

secla

Ok, I guess I just assumed that the solicitor was also representing the lender and them oking the paperwork would be good with the lender.
every time we think we’re at the end there seems to be another hoop to jump through 

they did have the gifted deposit form stating gift at the start of the process 4-5 months ago

K_S

secla said:

Just a quick question to ease my mind.

we had out mortgage offer through 4 months or so which consisted of a partial gifted deposit with the gifted deposit form etc filled in etc.
the process has been a bit drawn out but I think everything has been answered now, this week we had to submit documents for money laundering checks (which seems quite late in the day) but the solicitor has said all is ok with them and there now waiting to hear back from the lender.

do the lender have to go through the paperwork as well or just confirm the gift is ok ? We’re getting a bit tight on time with the mortgage offer now and the gifted is going on holiday at the end of the week so I’d prefer no delays

@secla As I understand it, in most cases, the lender relies on the solicitor to confirm that the funds being used for the transaction are from an acceptable source and that they have done the necessary AML checks.

secla

Yup that’s what I thought

may e there just confirming with the lender that they are aware some deposit is gifted. It’s nationwide btw 

[Deleted User]

Hi Secla , the lender does not need to see any paperwork to verify the source of gifted deposit. As KS says this is the solicitors job to verify. There are several reasons why they will go back to lender 1) to check lender is aware some of deposit is being gifted 2) To confirm the lender accepts gifts from who is gifting , for example some lenders will only accept a gift from a relative. I believe Nationwide do however accept from friends or relatives 3) To flag if the funds of gift were sourced from a potentially unacceptable source I.e a bank loan

secla

Relative gifted from savings so can’t see any reason to flag it, can only assume there checking to see if nationwide are aware it’s a gift which they are as we filled in the gifted deposit form on application 

[Deleted User]

Yeah that will be it then! Will be all good as they are aware. How long till your completion date ?

secla

Conveyancer won’t even talk about dates until everything sorted, I believe nationwide getting back to them is the last piece of the puzzle so hopefully nationwide will reply asap and we will be ready to go.
were 6 months in on a no chain sale so it’s already dragged on longer than we initially expected 

[Deleted User]

Hopefully just a few weeks at most . I’m due to complete on 23rd and was also asked to send information this week for money laundering. My offer was accepted 19th August