Gifted Deposit

Gifted Deposit

Firstly, we need to know who is gifting you money and the amount of the gift. We will then request ID and proof of address from the individual gifting money in order to confirm their identity.

Secondly, we need to determine the source of the gift to ensure this meets our anti-money laundering requirements. We need be satisfied that the source of the gift is legitimate and that the funds have been in the gifter’s account for a certain period of time before the gift has been transferred to your account.

These first two matters are dealt with by our specialist Source of Funds Team but your solicitor will deal with reporting the gift to your lender.

In some cases your lender will state on the mortgage offer that there is a gift involved. In most cases though your solicitor will need to write to your lender to advise of the gift or ask the gifter to complete a gift mandate. We will write to your lender regarding the gift as soon as we are aware a gift is involved. We are very much bound by your lender’s timescales and in some circumstances there can be delays receiving a response. All lenders are different and work to their own timescales so it is impossible to advise how quickly your lender will approve the gift.

When we have written confirmation from your lender that they are satisfied with the gift, we will then be able to progress the contract (missives). It is worth noting that this can often be fairly close to the anticipated date of entry.

It is worth remembering too that all lenders are different in their approach to gifts. Some lenders will only accept gifts from family members while others will accept gifts from family members and friends. This is a matter your broker should discuss with you when submitting your mortgage application so that there are no hiccups when your solicitor reports the gift to your lender.