AIBU to think this might prevent us from completing on our mortgage

[Ohhyes]

Hi, we are first time buyers, my partner has an IVA so I am buying the house in my name. We have both saved equal amounts for our deposit yet some of his has come from the sale of his trailer which he sold today for £1000 less than it’s worth for £5000 so that we had our deposit, as today the venders have accepted our offer! YAY! So he needed it gone!

However the people who bought his trailer have paid in cash and he’s going to put this in his account tomorrow and then will show proof of gifting deposit to estate agent afterwards to show our proof of deposit. However I am now panicking that this won’t be accepted by solicitor as it will look like money laundering they will want to know where it’s come from!
would I be being unreasonable to think this will make the sale fall through or am I over thinking it he has a receipt he printed off for the purchaser will this be enough am I dramatic!

You will absolutely be ok

Thank you I do have a tendency to overthink, especially when you really want something. So I know I’m likely being dramatic

Most lenders won't accept a gifted deposit from someone who isn't related to you. A few will but your options will be limited.

Can you create an invoice/receipt for the sale?

That bit is okay he just needs to write and sign a letter to say it’s a gift and doesn’t the money back at all

He did give them a receipt and can show this as it was created on his phone m, would this be enough?

You shouldn’t have any issues with a receipt showing where the money came from.

I gifted some money to a very good friend towards a house deposit and the solicitor asked for a copy of my savings account showing where it came from and a letter saying I’d gifted it. We’re not related so the comment about it not being accepted if not a family member isn’t accurate.

Thank you that makes me feel so relieved, this is the most stressful thing ever just feels so overwhelming

You’ll be fine. I was gifted £15k from my mum and was terrified it would be questioned as she hadn’t written a letter to say where it was from. No one asked for it and it all went ahead smoothly. I know how stressful buying a house is. I was a wreck until the day we were all moved in. Best of luck and try not to worry. You’ll be fine!

Yes just show the receipt for the sale, if solicitor asks for proof of where these funds initiated your receipt should be fine!

Most lenders won’t accept any deposit from someone who is going to be living with you but not on the mortgage. Does your lender know he is going to be living there?

I would be more concerned about the terms of the IVA - unless of course it has ended.

It is my understanding that your partner has to declare the sale of an asset to their Insolvency Practitioner and it is likely that the money will have to be paid into the IVA to help clear the debt. Failure to declare / hiding funds is fraud.

It’s ended, but not long enough to be on the mortgage

All good then.

I don’t think it’s the lenders business who will be living there? The mortgage will be in her name only, she will
be making the mortgage payments. As long they can prove where the money came from that’s all they care about.

I’ve recently been through the mortgage rigmarole and was gifted 20k from a none family member. It was all good.

OP try not to worry you will be in your home soon enough.

Thank you all I’ve spoken to the broker today and they’ve said it’s fine thank goodness!

I gave my son his deposit. We had to explain it was a gift from my inheritance. No big deal.