Kevsy07
I had to do one of these letters when I applied for my first mortgage about 4 yrs ago. I had 2 loans outstanding so I said that my folks were going to 'gift' me €20K. In reality, they were loaning me €12k for deposit.
In the end it took 12 months for the property to be ready and in that time I paid off the loans so when it actually came to producing the letter I said that it was €10K and sent in letter. Bank came back and said "You said they were gifting €20k", so I printed out another letter with €20k on it, my dad signed again and bank were happy with that. It was a bit of a joke really!
In my experience all the banks want is
1. your folks to sign that they are not going to claim a share in your property (leaving you unable to repay the mortgage back, say, if you sold)
2. that this is not a loan as loans count against the amt they will loan you.
So for me anyway, it was just a piece of paperwork. They didn't want any more info. I won't mention the bank but it was one of the major ones.
By the way, the bank are probably making you feel like you are jumping thru hoops to get this mortgage, but don't worry, it will be worth it in the end
