Proving no gifted deposit on mortgage?

simon_or

Well in that case it does look the like solicitor is going a bit OTT with their source of deposit checks 

But ultimately if they insist that it's a gifted deposit, as you won't be an occupier, it should be ok to treat it as a gift with most banks, all the solicitor needs is a letter/form from you confirming the same and it should be all good on the conveyancing front.

It still beggars belief that they'd go through all this trouble for a £1,000 gift from 15 months ago!

silvercar

Lenders are uncomfortable with gifted deposits if the donor isn’t related.

That aside, my son’s HTB savings account was funded directly from my husband’s current account. The solicitor didn’t have any problem with this.

I thought there was a general rule that any contribution to savings held for over 6 months were no longer considered as gifts. 

agbero

silvercar said:

Lenders are uncomfortable with gifted deposits if the donor isn’t related.

That aside, my son’s HTB savings account was funded directly from my husband’s current account. The solicitor didn’t have any problem with this.

I thought there was a general rule that any contribution to savings held for over 6 months were no longer considered as gifts. 

Thanks v much Silvercar - I'll ask look into that and let my partner know - it seems absurd to me that money gifted or loans repaid with no mention of it being related in any way to a deposit should be assumed to be a 'gifted deposit' until proven otherwise - draconian or fee-racking (I'm just not sure which)!

Thanks again

nicmyles

It seems a fairly straightforward problem to solve, though, since you can presumably just affirm it is a gift and not a loan.

The fact it is so old and such a small amount does seem very odd, but the same principle was in place when I bought several years ago - some money my parents had loaned me for some home improvements in the end had to be treated as a gifted deposit (even though it was not used for the deposit or any costs associated with the purchase itself).

Gavin83

agbero said:

silvercar said:

Lenders are uncomfortable with gifted deposits if the donor isn’t related.

That aside, my son’s HTB savings account was funded directly from my husband’s current account. The solicitor didn’t have any problem with this.

I thought there was a general rule that any contribution to savings held for over 6 months were no longer considered as gifts. 

Thanks v much Silvercar - I'll ask look into that and let my partner know - it seems absurd to me that money gifted or loans repaid with no mention of it being related in any way to a deposit should be assumed to be a 'gifted deposit' until proven otherwise - draconian or fee-racking (I'm just not sure which)!

Thanks again

I think you are missing the point a little on this. Once someone gifts/loans you some money it just gets added into your general pot. From the lenders perspective it isn't separate money. After all what's to say it wasn't her £1k that got spent on the other thing and the £1k you gave her wasn't spent on the house? Also presumably if the money hadn't been lent then they'd have had £1k less to put towards the house, plus if it's a loan and needs to be paid back it's irrelevant what it was used for, it's still a liability that reduces the ability to pay the mortgage.

However I do agree with the majority, the small amount coupled with the length of time does make this request seem a little over the top. Personally in your shoes though I'd just write something confirming it was a gift and play the game. It's likely a lot easier than arguing the point.