The house price is €260,000 and our approval is for €176,000 (which is actually below the 3.5 income multiple, but I can gripe about that in a different thread...!) so we need to make up the difference of €84000... so that's €50k from ourselves, and €34,000 from gifts from both our sides, plus an extra €5,000 to cover legal fees etc.So you have mortgage approval for (say) €350k to which you're adding a deposit of €50k. Now the price is €429k and you're getting the €29k from those various sources?
It's just the amount of gift letters that will have to be filled out, I'm just getting a bit paranoid that the bank will question why so many people are involved, and as you say it would look cleaner if it all came from one source ie. my Mum.My main question is why the bank would be interested at all if the situation is broadly as outlined above?
My uncles have already paid 5k + 4k into my bank a/c, but my grandmother and aunt can still lodge into mums a/c, and in turn she would transfer over to me a clean €20,000, so big thanks for this suggestion, don't know why I didn't think of it alreadyIf the bank will have visibility on these transfers, get your family members to transfer the cash to your Mum in the first instance and then on to you. From a tax perspective, the gifts would still be deemed to come from the various individuals, but it would be far cleaner in the context of explaining it to the bank (i.e. I got €29,000 from my Mum).
The gifts as envisaged will be taxed as follows:
€8,000 from your aunt: First €3,000 ignored (Small Gift Exemption), with the balance (i.e. €5,000) coming off your Group B tax-free threshold of €32,500 (assuming you've never received any prior "Group B benefits).
€7,000 from your grandmother: First €3,000 ignored (Small Gift Exemption), with the balance coming off the remainder of your Group B tax-free threshold of €27,500.
€5,000 from your mother: First €3,000 ignored (Small Gift Exemption), with the balance coming off your Group A tax-free threshold of €310,000.
€5,000 from your uncle: First €3,000 ignored (Small Gift Exemption), with the balance coming off the remainder of your Group B tax-free threshold of €20,500.
€4,000 from your uncle: First €3,000 ignored (Small Gift Exemption), with the balance coming off the remainder of your Group B tax-free threshold of €15,500.
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