Mortgage offer decreased by £8k

stargirl26

Long story short, I had a mortgage offer with nationwide for a new build and the 6months ran out, we had an extension to it agreed but unfortunately that too ran out. Nationwide have offered us a new mortgage but we are now circa £8k short for the house and they want to complete next week (we have already paid circa £30k deposit and my mother has added to that by gifting us £10k).
Another family member has offered to gift us the £8k however part of this will be from transferring money from a credit card to their current account, will this acceptable? 

housebuyer143

I dont believe the bank cares were they get their money from, along that is it a gift. The solicitor might, but just to show they are not money laundering. How close a family member are they - some lenders only like immediate family to lend, like mothers, fathers, brothers etc.? Will Nationwide allow them to gift you this money?

stargirl26

housebuyer143 said:

I dont believe the bank cares were they get their money from, along that is it a gift. The solicitor might, but just to show they are not money laundering. How close a family member are they - some lenders only like immediate family to lend, like mothers, fathers, brothers etc.? Will Nationwide allow them to gift you this money?

It’s a sibling that has offered. The circa 8k works out to be around 3.5% of the house price (if that counts for anything), so not a huge percentage. I’m not sure where else Nationwide think we will get it from.

silvercar

Nationwide won't care where it comes from as long as it is a gift not a loan. Your solicitor may feel that is necessary to know the source of the money and that the sibling knows it is a gift. If time is short and the solicitor already has the paperwork they require for the gift from the mother, it may be a solution for the sibling to gift to the mother and the mother to gift it to you.

silvercar

Nationwide won't care where it comes from as long as it is a gift not a loan. Your solicitor may feel that is necessary to know the source of the money and that the sibling knows it is a gift. If time is short and the solicitor already has the paperwork they require for the gift from the mother, it may be a solution for the sibling to gift to the mother and the mother to gift it to you.

stargirl26

silvercar said:

Nationwide won't care where it comes from as long as it is a gift not a loan. Your solicitor may feel that is necessary to know the source of the money and that the sibling knows it is a gift. If time is short and the solicitor already has the paperwork they require for the gift from the mother, it may be a solution for the sibling to gift to the mother and the mother to gift it to you.

Can I ask, the solicitors have already carried out the checks on mother I.e bank statements. If the brother transfers the money to her and she in turn transfers money on the completion but it’s more than first thought will they again need to check statements etc? I’m getting very panicked as we were only advised on Friday the new mortgage offer was lower than before

MWT

stargirl26 said:

Can I ask, the solicitors have already carried out the checks on mother I.e bank statements. If the brother transfers the money to her and she in turn transfers money on the completion but it’s more than first thought will they again need to check statements etc?

Do the statements already supplied show sufficient funds to cover the additional £8k?

I would always suggest keeping things accurate and don't try to dodge around the truth as you really don't want to get a marker for mortgage fraud...

As long as your brother is happy to complete the paperwork affirming that the money is a gift with no strings attached he should be fine as a source of the the funds, but just ask your solicitor as they are the ones who will be handling the AML questions for the lender.

housebuyer143

You will need to declare to nationwide if you are getting another gift from someone else, so give them a call if you want to do this. A sibling will be fine but they will need to okay this first.

stargirl26

I wouldn’t want to do anything illegal, and just wanted to know if a money transfer from a credit card to a current account and then used as a gifted deposit would be acceptable. 

As soon as we know we can contact Nationwide to inform them of the other gift once we know the source. Thanks for all replies it’s much appreciated  

housebuyer143

stargirl26 said:

I wouldn’t want to do anything illegal, and just wanted to know if a money transfer from a credit card to a current account and then used as a gifted deposit would be acceptable. 

As soon as we know we can contact Nationwide to inform them of the other gift once we know the source. Thanks for all replies it’s much appreciated  

It's not illegal, I don't think it would be of concern to anyone as it's not your debt and the money is declared as a gift.

johnhenstock

I think you're complicating things. if I was you, I would simply proceed. when the solicitor asks for the outstanding funds, the missing £8k will be part of that. you transfer the money, that's that. no one will ask for anything...