mortgage deposit - gift letter

2

25percentman

Guest
Hi there,

Myself and my brother are going to buy a house that is owned by my mother and her sister. The value is approx 275,000. We are looking to get a mortgage of 92% which is approx 253,000. The problem is that we only have 12,000 saved.

Our mother say's that she will give us the rest of the deposit. I've heard about 'gift' letters. Does my mother have to give us the cash up front before we can get the mortgage or does a gift letter to the lender suffice?

Thanks in advance,

25%man
 
I was advised by my broker to use this method to help persuade the bank to lend me the money!!! I asked my parents to sign a letter saying they would give me a gift of 8,000 euro..they never needed to give this or prove they did...

hope this helps
 
Thanks for your quick reply réaltín09.. did you draft up the letter yourself and get them to sign it. I thought the lender would want the deposit transferred to them?

thanks again
 
you shouldnt need the money before the mortgage is approved but the bank will look for a letter these days .

best of luck
 
We also did this recently. Just draft up a letter saying you have are getting a gift of €... from your mother and this will be used as the deposit to purchase the property. I have a copy I can pm you if you like. Only need the letter for the application, money can be transferred if you get approval.
 
Just to add it would be no harm to include that your mother has no vested interest in the property after the gift has been given, we got a gift of €10k from my mother in law when we bought our first house and we had to include that detail in order to secure the mortgage.
 
You must log in or register to reply here.
Back
Top