Gifted deposit and parent’s bank statement

[gbrk1c]

My dad has given me money for a deposit for a property. The mortgage company are aware of this and have made a formal offer and have it wrote into the offer they are aware of the deposit being gifted. The deposit came from a sale of a property and I have a letter To prove this howevery on principle my dad has said it was/is a gift and will not produce bank statements.. not because he has anything to hide but because he gifted the money. I am aware of anti money laundering regulations, however will the letter produced confirming sale not be enough? I can evidence on my bank statement the money coming into my account which has been there for 2 months now. If the application cannot go ahead the sale will fall through which then I ask how long does the money have to be in my account before it is considered my own. (The mortgage company have the form from him saying it is a gift and has no interest etc and they are happy)

Just seen the post about the aunt - no do not do this! They will want to know where she got the funds, so would involve showing the money coming from your parents account to her's. That would raise a suspicion of money laundering as there is no good reason why that transfer happened apart from your fathers stubbornness (which is not a sufficient excuse).

He just doesn’t want anyone looking at his private bank statements whether it’s real anyone.
I am not trying to be dishonest and not would I be, I’m just trying to think of a workaround and would be upfront and honest with my solicitors and mortgage company about the fact I am changing the person gifting the deposit and the funds would be evidenced as coming from her and/or into my bank account. If the mortgage offer is retracted, at least I can say I tried something. Just need to speak to my solicitor really.

He’s not hiding anything. He’s just an older generation man with his own principles which doesn’t help. So frustrating all this

Also, the money my dad gifted me is already in my account and has been for 2.5 months.

If you move it back and try and get your aunt to do it instead won’t the paper trail look dodgy?

Get him to send it directly to the solicitor. Show him all the money laundering regulations. It might make him realise if it's down in black and white rather than you just telling him.

No. The solicitors and everyone else need to be able to sign a formal statement that they are satisfied that the money truly comes from the source claimed. You can't be honest with them and then expect them to lie on your behalf - the money did not come from your aunt. They already know this.

Your aunt will still need to prove where she got it from which won't make any difference to the process. You will have to prove it came from you, then you'll have to prove where you got it from. Your dad will still need to give proof ultimately.
I would check first the documents they definitely need to proceed.
If necessary do what PP said and block out transactions he wants to keep private.

Can't you get a letter from your dads solicitor to confirm the property sale? Or alternatively use the same solicitor he did as they will personally be aware of it

My dad 'gifted' us a deposit. For the mortgage broker they asked for a gift confirmation letter and ID.

But the solicitors wanted to see his bank statements for money laundering, which he refused. In the end they accepted another written confirmation from him and ID. However the sum involved was relatively small (£10k).

Of ourse you can be sure your dad is honest. For the people who don't know him - including everyone on this thread and all the financial professionals involved - currently they don't have evidence that he isn't a Tony Soprano style gangland boss who just acquired £100,000 from a drug deal. Tony Soprano could write a letter saying that it was from the sale of property but that wouldn't be true. How can your dad prove that this money isn't dodgy?

I think you need to try to resolve this with your dad, rather than looking for ways to make the process suit his preferences. I completely understand why he wouldn't want to submit bank statements, but things have changed and the financial diligence around mortgage applications is much, much more exacting than before. It's possible that you won't just miss out on this house if he won't comply; you might find it difficult to buy at all.

Also, I'm not an expert, but I'm not sure if it matters how long the money has been in your account? It still is, and always will be, a gifted lump sum and its origins will need to be accounted for. When your mortgage provider or solicitor look at your own bank accounts, it'll be pretty obvious whether you've been saving up the deposit month-by-month or received most of it at once (assuming it's quite a large amount).

Definitely don't start shifting the money between relatives - it'll look very suspicious. FWIW, during our mortgage application, they queried a £500 refund and a standing order on our account; I was surprised at the attention to detail.

Does your dad know that because of his principles the sale could fall through and therefore his gift would be pointless?

We did the same for our DS and we refused to send bank statements. Our bank manager contacted the solicitor directly and confirmed that we had sufficient funds and how we happened to have enough money

All sorted now. Solicitor will accept a bank statement blacked out with funds going in from sale and out to me which he will do. He just won’t suppply to mortgage broker. All should hopefully go through. Thank you everyone for your input.

I loaned my son the money to buy a house outright, his solicitor needed my building society book as proof of the origin of the money, despite having handled the sale that generated the money four months before.

Glad it's sorted and I was going to say exactly what you have ended up doing in your last post anyway.

Also I think it's really unfair that people have called your dad grumpy and suggested he's hiding something. He is obviously generous to have helped you. My dad is an OAP now and he has acted as guarantor on rent and helped with mortgage this time round (I'm divorced now so starting again on the housing ladder). He also didn't want to show bank statements as to him that's private information and he doesn't like sharing it. He only shared it when 100% necessary and always blanked out everything but the essential transactions. He also had to show payslips which he hated doing because again it's personal information. He's just a private man and from a generation where a lot of the checks done now weren't necessary then.

I think your Dad and others who think like him are right to be cautious. It is very easy to comply with money laundering disclosure if you have little in the way of assets etc. However it is all too easy to disclose more than necessary if you do and open yourself up to the hard sell or worse from unscrupulous middle men / women, which includes a good many brokers and EAs.

I have recently gifted my DS a lump sum as part of his deposit to buy his first home. I had to send statements from the investement that the money came from and sign a letter stating that it was a gift and I had no claim on the property. Yes it is a pain, but if that is what mortgage companies require now, so be it.

We are planning to give DC a lump sum for house deposit and I can full imagine DH stamping his feet about having to prove where it came from. Also he moves money around so much it would probably look dodgy even though he's not Tony Soprano.

Ah glad it’s all sorted! I can see your Dad’s point about not wanting his every transaction given to a stranger so I’m glad he could black out his own stuff.

I transfered small amount of money as a gift to my daughter to help her to buy her house. Sign gift letter as well as send months of bank statements to various people as per request. There were about 5 diffent persons which I had to do that, lawyer, financial adviser., mortgage people, I'd checking agency. I was worry about providing all those documents to so many sources. When I called their office I have been told that everything is to avoid scam. I believe that spreading my personal documents is just opening door to scam. Now I receive still email to explain where my gifted funds acurred from. Can please someone tell me is this right?