Building Up Deposit - Question

rogercross

Ill be putting a certain amount away each month into a savings account and wont be touching it so this will be the mortgage deposit funds for myself and herself.

I've just learned that her parents want to gift us 15k split into a set amount per month to go towards this deposit on top of what ill be putting in, what i want to know is will that cause any problems in terms of getting mortgage approval when the time comes or would it clearly be seen for what it is, a gift towards our deposit and not something that could work against us.

Parents help with deposits all the time i hear when it comes to housing etc, i'm just wondering how its normally done

johnnyskeleton

rogercross wrote: »

Ill be putting a certain amount away each month into a savings account and wont be touching it so this will be the mortgage deposit funds for myself and herself.

I've just learned that her parents want to gift us 15k split into a set amount per month to go towards this deposit on top of what ill be putting in, what i want to know is will that cause any problems in terms of getting mortgage approval when the time comes or would it clearly be seen for what it is, a gift towards our deposit and not something that could work against us.

Parents help with deposits all the time i hear when it comes to housing etc, i'm just wondering how its normally done

In a worst case scenario I think banks will require a declaration that the funds given were a gift and they are not claiming any interest in the property.

rogercross

johnnyskeleton wrote: »

In a worst case scenario I think banks will require a declaration that the funds given were a gift and they are not claiming any interest in the property.

Ok that wouldn't be a problem. Would it matter if it went into a different account like my other halfs account instead of mine, when putting together deposit funds would it be better to be all in one place or would several accounts with proper standing orders work just as well

StiffOldMan

Make it as simple as possible to 1) show savings and 2) repayment capacity. I would be putting the parents money into a separate account, keep it simple. It makes things simpler for the underwriters which is always a good thing

lainey316

It doesn't matter what account it goes to. The bank won't count it as part of your stress test (regardless of it being monthly) because it's a gift, you need to cover that from your rent & savings from salary.

Whether they pay it as a lump or monthly won't matter. It won't go against you (or shouldn't, based on what we went thru with EBS and BoI - I can't speak to other banks). We had old savings I couldn't prove the source of plus wedding gifts, didn't cause any issue really because our stress test funds were separately traceable (rent plus regular savings from salary)

Browney7

Worth bearing the small gift exemption of 3000 per person in mind here aswell so ye can get 12k combined per annum without it going against CAT thresholds

rogercross

Browney7 wrote: »

Worth bearing the small gift exemption of 3000 per person in mind here aswell so ye can get 12k combined per annum without it going against CAT thresholds

Interesting i never knew that, so to break it down then would it be done something like this:

Her mum gives me 3, also gives my gf 3 and then her dad gives me 3 and gf 3 yea?

BBMcQ

Yep 100%.