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Confused by gifted deposits? We’ve made the process as simple as possible

David


David - Underwriter

Published 22.08.2018

There have been lots of stories in the media recently about how more aspiring homeowners are depending on financial support from their parents to help them get on the housing ladder. I’ve even read a story which said that if the Bank of Mum and Dad was a mortgage lender it would be the 9th largest one in the UK*.

We understand that many people rely on financial support when buying a house which is why we’ve made our gifted deposit process as simple as possible.

It all depends on how much the gifted deposit is for. For gifts of £50,000 and above, we’ll need the donor to complete a Gifted Deposit Form. The form is simple and quick to fill in. Take a look at it by clicking here. The donor will need to explain the relationship between themselves and the recipient and confirm they don’t have any rights to property and won’t be living there. We’ll also need to see evidence of the source used to fund the deposit. We’ll accept certified copies of the gifter's bank or savings statements showing the funds are readily available.

When a gifted deposit is less than £50,000, in the majority of cases we won’t need the Gifted Deposit Form or evidence, but there may be times when this is required at the underwriter’s discretion. If you’re unsure and would like to talk with someone, speak with your Business Development Manager or call our dedicated support team on 0800 116 4385.

*Source: https://www.ft.com/content/0bd5e826-2e49-11e7-9555-23ef563ecf9a

 

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