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    • runnermarisol
    • By runnermarisol 13th Jul 18, 1:07 PM
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    runnermarisol
    Solicitor writing to bank about gifted deposit
    • #1
    • 13th Jul 18, 1:07 PM
    Solicitor writing to bank about gifted deposit 13th Jul 18 at 1:07 PM
    Iíve got fairly far down the buying process (all surveys, searches etc done) and have been offered a mortgage by Nationwide a couple of weeks ago. My parents are giving me a significant part of the deposit as a gifted deposit and completed the gifted deposit form for Nationwide, as well as doing a written letter for the solicitor and visiting him with their ID and proof of savings to deal with the money laundering checks. I thought that everything was sorted and all we were waiting for before we could exchange would be replies to enquiries to the vendorsí solicitor.


    However, my solicitor has now told me that he is now writing to Nationwide to check that they are happy with the gifted deposit, and we have to wait to hear back from Nationwide. Is this normal? Iíve already got a mortgage offer and the solicitor was previously happy with all the gifted deposit paperwork. Iím concerned this is going to hold up things significantly as Nationwide took so long to reply to everything before issuing the mortgage.
Page 1
    • thermal2844
    • By thermal2844 13th Jul 18, 1:14 PM
    • 108 Posts
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    thermal2844
    • #2
    • 13th Jul 18, 1:14 PM
    • #2
    • 13th Jul 18, 1:14 PM
    We went with Halifax but our solicitor did the same thing, she said it's routine and rarely a problem. I wouldn't worry. In our case she was right.
    • AnotherJoe
    • By AnotherJoe 13th Jul 18, 1:23 PM
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    AnotherJoe
    • #3
    • 13th Jul 18, 1:23 PM
    • #3
    • 13th Jul 18, 1:23 PM
    Seems strange to me that its "routine" when you have completed a gifted deposit form already. Whats the point of the letter other than drawing out the process because now you have to wait for letter to nationwide, nationwide run the process to answer, letter back, solicitor to check letter ? Will probably add a couple of weeks on.
    • kingstreet
    • By kingstreet 13th Jul 18, 1:30 PM
    • 34,112 Posts
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    kingstreet
    • #4
    • 13th Jul 18, 1:30 PM
    • #4
    • 13th Jul 18, 1:30 PM
    Is this normal?
    Originally posted by runnermarisol
    Yes. It is.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.
    • kingstreet
    • By kingstreet 13th Jul 18, 1:31 PM
    • 34,112 Posts
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    kingstreet
    • #5
    • 13th Jul 18, 1:31 PM
    • #5
    • 13th Jul 18, 1:31 PM
    Seems strange to me that its "routine" when you have completed a gifted deposit form already. Whats the point of the letter other than drawing out the process because now you have to wait for letter to nationwide, nationwide run the process to answer, letter back, solicitor to check letter ? Will probably add a couple of weeks on.
    Originally posted by AnotherJoe
    It's done by fax between solicitor and lender completion dept and takes a couple of days.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.
    • AnotherJoe
    • By AnotherJoe 13th Jul 18, 1:34 PM
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    AnotherJoe
    • #6
    • 13th Jul 18, 1:34 PM
    • #6
    • 13th Jul 18, 1:34 PM
    And whats the point of it Ks except additional *rse covering?
    • kingstreet
    • By kingstreet 13th Jul 18, 1:38 PM
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    kingstreet
    • #7
    • 13th Jul 18, 1:38 PM
    • #7
    • 13th Jul 18, 1:38 PM
    None whatsoever.

    I suspect there's also an entry in the Nationwide section of the CML Handbook telling them not to do it too.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.
    • davidmcn
    • By davidmcn 13th Jul 18, 1:45 PM
    • 8,493 Posts
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    • #8
    • 13th Jul 18, 1:45 PM
    • #8
    • 13th Jul 18, 1:45 PM
    And whats the point of it Ks except additional *rse covering?
    Originally posted by AnotherJoe
    The point is that the standard CML instructions to solicitors says that all the deposit must come from the borrower, and that lenders typically fail to mention in their mortgage offer that they're already happy with the gifted deposit - so the solicitors have to separately check that with the lender.
    • Tiglet2
    • By Tiglet2 13th Jul 18, 2:39 PM
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    Tiglet2
    • #9
    • 13th Jul 18, 2:39 PM
    • #9
    • 13th Jul 18, 2:39 PM
    Yes totally normal.

    Even though the lender is aware of the gift, the solicitor still has to have it confirmed themselves as the solicitor is also "acting" on behalf of the lender. It's just so the solicitor and lender both have confirmations in writing that there is a gift and they are all happy to proceed on that basis. I guess if something goes wrong and someone is accountable, then the solicitor will have correctly followed the procedure as set out in the CML Handbook (Council for Mortgage Lenders).
    It is done by fax, so the response should only take a day to receive.
    • runnermarisol
    • By runnermarisol 13th Jul 18, 3:17 PM
    • 4 Posts
    • 0 Thanks
    runnermarisol
    Great, thanks everyone for your replies. It just seemed like an extra unusual step, so glad to know it's normal and not normally a lengthy issue.
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