About gifted deposits
Lenders need gifted deposits to be truly gifted (no repayment demanded during the mortgage and no share of the property claimed) so that the mortgage and their security (your home) is not jeopardised. If you want to pay the money back in the future when and if you can afford to, that is fine, even commendable, just so long as the money is gifted in a way that cannot affect them.
Generate a personalised template
Generate a letter for a deposit coming from a family gift. This would be used with proof that the deposit exists (e.g. a bank statement). Feel free to copy and paste the letter to use as a template, but please remember that it must reflect the true situation, so edit it if needed.
(Full names of Givers)
(Address of Givers)
(Date)
To: (Name of lender)
Re: Purchase of (address of property being purchased).
Dear Sirs,
(I/We) confirm that (I/we) (am/are) gifting (full names of purchaser/s) of (address of purchaser/s), (my/our) (relationship to giver/s), £(amount being gifted) from (source of funds) towards the deposit for the purchase of the above property.
(I/We) confirm that the deposit is an unconditional and non-repayable gift, that (I/we) will have no interests or rights in the property whatsoever. (I/We) also confirm that (I/we) will not reside in the property.
(I/We) confirm the availability of the deposit monies and understand that (I/we) may be asked for proof.
(I/We) agree that any personal documentation provided to support this application will be held on a mortgage file with all other information relating to this mortgage application. If the mortgage applicant(s) request(s) a copy of their mortgage file now or at any point in the future, the personal information that (I/we) have provided will be included in the information that is provided to the mortgage applicant(s).
Yours faithfully
(signature/s)
Advisors and Brokers - This is copyrighted but feel free to link to this page, here is the link:
<a href="http://slough-mortgage.co.uk/giftedepositlettergenerator" target="_blank">Gifted Deposit Letter Generator</a>
Slough Mortgage Centre, a trading name of True Mortgage Advice Ltd, is an Appointed Representative of Julian Harris Mortgages Ltd. Musgrove, Ashford, Kent TN23 7UN, which is authorised and regulated by the Financial Conduct Authority no. 304155.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Please note that some mortgages such as commercial BTLs are not regulated by the FCA.
The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk.
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