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    • pb9
    • By pb9 6th Jan 18, 11:10 AM
    • 1Posts
    • 0Thanks
    pb9
    HTB + gifted deposit
    • #1
    • 6th Jan 18, 11:10 AM
    HTB + gifted deposit 6th Jan 18 at 11:10 AM
    Dear All,

    Can anyone help me with my issue please, any commits would be great appreciated!

    Here is my current situation:

    1. I have got an offer from developer
    2. Got authority to proceed from HTB
    3. Received official mortgage offer from the bank by post.
    4. Both my broker and solicitor knows 100% of the purchase deposits will be paid using gifted money.
    5. Deposit has been checked by solicitor's AML officer, I am sure the bank is also happy with my deposit, otherwise I wouldn't have received their offcial mortgage offer in the first place.

    Here is the issue:
    Today I received the title report from the solicitors and this paragraph looks very concerning. Does it means I must purchase with my own money? Can't I use the gifted deposit? (I have only 6k in saving, but the purchase requires at least 170k, my parents has given me 175k and this amount is currently in my bank account.)
    Where the Authority to Proceed makes reference to the you providing some of your own investment to the purchase, this must come from your own resources (without the need for further borrowing or a gift from a family member or any other third party) and you must confirm that any such deposit/investment will be available on or before completion of the purchase of this property. If there is any gifted money or other funding arrangement please let me know in writing as soon as possible and in prior to exchange of contracts so that I may seek consent to the arrangement from your main lender and the HCA

    I couldn't find anywhere on the web mentioning people must use their own savings when purchase with help to buy, I have checked the authority to proceed letter from HTB's buyer's guide and I couldn't find anywhere mentioning the deposit cannot be gifted, the only thing I can see might relate to my cash contribution is this:
    REQUISITE AMOUNT OF CASH SAVINGS TO BE INVESTED BY BUYER: 169400
    Are gifts from family member considered as cash savings?

    Thanks for your help again!
Page 1
    • lesleyb
    • By lesleyb 6th Jan 18, 2:44 PM
    • 93 Posts
    • 114 Thanks
    lesleyb
    • #2
    • 6th Jan 18, 2:44 PM
    • #2
    • 6th Jan 18, 2:44 PM
    We have just been through pretty much the same thing, I had to see a solicitor and sign to say that the money I had transferred was a gift and that I would have no financial interest in the property HTH
    • amnblog
    • By amnblog 6th Jan 18, 8:33 PM
    • 10,571 Posts
    • 4,179 Thanks
    amnblog
    • #3
    • 6th Jan 18, 8:33 PM
    • #3
    • 6th Jan 18, 8:33 PM
    Standard text. All Lenders have a policy for gifted deposits which your broker will manage.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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