Mortgage deposit gift

araic88

Hi there, I'm in the process of applying for a mortgage from aib. In the next few daysI should get my salary cert back and then I'll be able to apply.
One thing though, I have 10% of the house price in savings and my parents are giving me an extra €5000 to help with fees, furniture etc. I said this to the mortgage co-ordinator and that the 5k isn't in my account yet. She didn't mention needing a letter from my parents to state that its a gift & not a loan (which someone since mentioned).
Do you think that's because its not part of the deposit I'm using or would it be better to get one? I'm not sure what to ask them to write, would a very short letter do?! Or maybe the bank would have a form for tHem to fill out

Trish56

Araic88 - AIB will just want to see the difference saved between the purchase price and the mortgage approved so if you have 10% that will suffice as evidence. Should be no need to provide a letter from your parents.

araic88 wrote: »

Hi there, I'm in the process of applying for a mortgage from aib. In the next few daysI should get my salary cert back and then I'll be able to apply.
One thing though, I have 10% of the house price in savings and my parents are giving me an extra €5000 to help with fees, furniture etc. I said this to the mortgage co-ordinator and that the 5k isn't in my account yet. She didn't mention needing a letter from my parents to state that its a gift & not a loan (which someone since mentioned).
Do you think that's because its not part of the deposit I'm using or would it be better to get one? I'm not sure what to ask them to write, would a very short letter do?! Or maybe the bank would have a form for tHem to fill out

fricatus

Trish56 wrote: »

Araic88 - AIB will just want to see the difference saved between the purchase price and the mortgage approved so if you have 10% that will suffice as evidence. Should be no need to provide a letter from your parents.

I would doubt that very much. They will look back over the past six months of savings and see a very large deposit. Probably under anti-money-laundering legislation alone, they will need evidence of where it came from.

They'll probably be happy enough with a letter from your parents stating that it's a gift rather than a loan though.

dar100

You have the 10 percent, but you could get a 92% mortgage so would only need 8% savings. You will not need a letter as you have the full amount.

dar100

araic88 wrote: »

Hi there, I'm in the process of applying for a mortgage from aib. In the next few daysI should get my salary cert back and then I'll be able to apply.
One thing though, I have 10% of the house price in savings and my parents are giving me an extra €5000 to help with fees, furniture etc. I said this to the mortgage co-ordinator and that the 5k isn't in my account yet. She didn't mention needing a letter from my parents to state that its a gift & not a loan (which someone since mentioned).
Do you think that's because its not part of the deposit I'm using or would it be better to get one? I'm not sure what to ask them to write, would a very short letter do?! Or maybe the bank would have a form for tHem to fill out

The bank have a form for it, they will send it through the email system, with your SIP letter, thats if you need it of course

Trish56

The OP stated that the gift is not lodged yet so wont feature in her bank account.

fricatus wrote: »

I would doubt that very much. They will look back over the past six months of savings and see a very large deposit. Probably under anti-money-laundering legislation alone, they will need evidence of where it came from.

They'll probably be happy enough with a letter from your parents stating that it's a gift rather than a loan though.

cookiecakes

If the 5k is put in and shown on your statements with your application, you might have to get a letter. We did for UB anyway. Wasn't making up any part of the deposit but we had to get my parents to write a letter stating it was a gift and then the underwriters advised our solicitor that it had to be a solicitor's letter before we could draw down. We were getting married at the same time as applying for the mortgage so that's the only reason the money from them was in the savings account. We were nervous that they were gonna ask us for gift letters from all the people we had lodged money from but thankfully not

L1011

I've never heard of a requirement for it to be a solicitors letter before - for smaller gifts you'd almost give it back until after closing with that!

cookiecakes

Yeah if we'd known it was going to cause such a fuss, we wouldn't have dreamt of deposing it at the time. Our solicitor told us some banks are really clamping down on it as they got caught out too many times with people having to repay amounts after they get their house.

araic88

Thanks for the replies.
I asked mortgage co-ordinator and she said it would be "no harm" to include it In application. They have a form to fill aboutIt so I didn't get a letter as such.
I thought my application would be sent by now and maybe even approved/declined but it is taking a while to get my salary cert stamped & back from department of education :-( I'm not good at being patient!

dar100

araic88 wrote: »

Thanks for the replies.
I asked mortgage co-ordinator and she said it would be "no harm" to include it In application. They have a form to fill aboutIt so I didn't get a letter as such.
I thought my application would be sent by now and maybe even approved/declined but it is taking a while to get my salary cert stamped & back from department of education :-( I'm not good at being patient!

Good luck with it, I sent mine off a few days ago. Hoping to find out if I'm been approved, in the next few days.

killers1

araic88 wrote: »

Hi there, I'm in the process of applying for a mortgage from aib. In the next few daysI should get my salary cert back and then I'll be able to apply.
One thing though, I have 10% of the house price in savings and my parents are giving me an extra €5000 to help with fees, furniture etc. I said this to the mortgage co-ordinator and that the 5k isn't in my account yet. She didn't mention needing a letter from my parents to state that its a gift & not a loan (which someone since mentioned).
Do you think that's because its not part of the deposit I'm using or would it be better to get one? I'm not sure what to ask them to write, would a very short letter do?! Or maybe the bank would have a form for tHem to fill out

Just type up the following letter, ask them to sign it and it will suffice..

'I/We confirm that we are gifting our son/daughter (insert name) the sum of €X to assist with the purchase of (enter property address). We further confirm that this gift is non-repayable and we have no beneficial interest in this property en foot of making this gift'

Yours etc..

bmwguy

It was 2010 when I got my mortgage so things might have changed but I was gifted 8% of my house price by my parents in 2008 and I put it in a credit union account. When I spotted the house I wanted I moved it from credit union to bank account as proof I had the deposit funds, sent in 6 months statements and nobody ever asked where a lump sum of that amount just appeared from. Maybe they are randomly checked but I dont know