Gift letter from parents for deposit

Discussion in 'Mortgages and buying and selling homes' started by Kitekat, Apr 28, 2010.

  1. Kitekat

    Kitekat Registered User

    Posts:
    28
    Hi,

    I've applied for a mortgage. I am short about 4,000 for the deposit and the bank are asking where I will get this. i said that my parents will be helping me out and the bank have said they will need a gift letter. Has anyone else handed in one of these. If so, what does it involve. Do they simply write a letter for you or do they have to give their bank account details?
     
  2. mathepac

    mathepac Frequent Poster

    Posts:
    5,540
    This worked for my daughter and her partner five years ago - no other documentation was requested by the lender.
    [FONT=&quot]
    RE: Ms. Mathepac (jnr) and Named Partner[/FONT]



    [FONT=&quot]To Whom It May Concern,[/FONT]

    [FONT=&quot]I confirm that I made a non-refundable gift of €30,000, thirty thousand euro, to the above named as a deposit for house purchase.[/FONT]


    [FONT=&quot]Yours Sincerely, [/FONT]


    [FONT=&quot]Mathepac.[/FONT]
     
  3. LDFerguson

    LDFerguson Frequent Poster

    Posts:
    3,879
    It's generally just a letter from your parents confirming that they are giving you an unconditional gift, that they don't expect repayment and that they will have no financial interest in the property. Your own lender should be able to give you a suitable draft wording.
     
  4. Mad Bad Babs

    Mad Bad Babs Registered User

    Posts:
    16
    I got a gift from my parents 6 years ago for part deposit also. (approx €12,000)The letter written was similar to above posters. The bank PTSB also requested proof that the money has been lodged to my account. So when my parents lodged the money into my account i had to produce a mini statement to prove it had been lodged.
     
  5. fizzelina

    fizzelina Frequent Poster

    Posts:
    540
    I gave a similar gift letter as part of my mortgage application - it said the same as what LD states and my broker gave me the template wording. I didn't need to show the money lodged to the account though.