Using gift as deposit

B

brav

Guest
Hi,

I have seen on here people using gift as deposits for houses and as long as you get a declaration of no interest, which my parents signed and I have given to bank, usually no problems.

In our case bank has come back to us asking how my parents got the money for the gift, whether from savings or loan and if from savings they want statements showing it.

Is this normal?

I'm not aware of how they got the money I'm sure some was savings but some maybe loan, don't feel its right for me to ask this as they have given gift to me and they have signed the declaration of no interest.

Thanks for any input
 
This is what I first thought but if this is the case then what will showing statements or how much of it was a loan will do?
Either way they signed the declaration of no interest saying it was a gift, is there something else they would have to sign or is it simply the bank don't want to give the mortgage to us?
 
I never heard of this before. I gave the same gift letter to my bank for our mortgage only 6 months ago and they never queried a thing about the letter. The banks really seem to be getting stricter, makes it even harder to get the mortgage cheque. I thought it was long and drawn out enough for us.
 
If your parents statements show a steady build up of savings then the lender will be satisfied that they have not borrowed to fund the gift (even though they could have gotten a credit union loan). If it is a loan then the banks will not accept it.

The bank seems to be looking for a reason to decline your application but if your parents statements are ok then you should be fine.
 
could also be stricter controls against money laundering. i know when i got my house 5 years ago i was asked for proof of where my deposit came from (an inheritance) and was told it was due to money laundering regulations, so they may just be trying to make sure that your parents aren't involved in any shady dealings!!
 
Seems unusual and I suspect they may be looking for reasons to refuse the application. Which bank are you applying to?
 
Was with AIB, My parents are going to send on statements showing some of their savings, we'll see how we get on.
 
Might be worth your while submitting applications to BOI and EBS if the statements are insufficient or they have other conditions.
 
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