Savings and Investments thread

Thanks all, so far below, please check I haven't missed you!

Name	Level
Morboe	7312
Daarrrzzettbum	7333
No.1 in South London	6985
Bangkokaddick	7390
blackpool72	7400
RalphMilne	7415
gunnessaddick	7458
Hoof_it_up_to_benty	7495
Rob7Lee	7505
Covered End	7512
WishIdStayedInThe Pub	7544
CharltonKerry	7594
LargeAddick	7647
valleynick66	7654
fat man on a moped	7681
HardyAddick	7692
bobmunro	7784

7159

Name	Level
Thread Killer	7159
Pedro45	7297
Morboe	7312
Daarrrzzettbum	7333
No.1 in South London	6985
Bangkokaddick	7390
blackpool72	7400
RalphMilne	7415
gunnessaddick	7458
Housty	7466
Hoof_it_up_to_benty	7495
Rob7Lee	7505
Covered End	7512
WishIdStayedInThe Pub	7544
CharltonKerry	7594
LargeAddick	7647
valleynick66	7654
MrOneLung	7654
fat man on a moped	7681
HardyAddick	7692
bobmunro	7784

Not sure if this is the right thread but wondered if someone could help me. Me and my girlfriend had an offer accepted on a house yesterday and we are a few ££ short of a 15% deposit. My gf's nan has said she will lend us the £2000 that we need but as she is an old lady, she wants to give it to us in cash. Is this gonna cause an issue when they  come to checking our deposit?

jacob_CAFC said:

Not sure if this is the right thread but wondered if someone could help me. Me and my girlfriend had an offer accepted on a house yesterday and we are a few ££ short of a 15% deposit. My gf's nan has said she will lend us the £2000 that we need but as she is an old lady, she wants to give it to us in cash. Is this gonna cause an issue when they  come to checking our deposit?

IFA & mortgage broker here......

Depends on how its done, which lender you apply to & if you are using a broker.

Officially your nan should complete a "Gifted Deposit" form which says that the £2k is an outright gift, that it is never to be repaid & that she has no financial interst in the property.

Unofficially, she could just give you the £2k & you simply put it into your savings account and say nothing. Although lenders will want to see proof of your deposit its very rare that they ask where all the money had come from. If they can see regular payments going in from your main bank accounts then thats usually enough. Obviously a random £2k just appearing in an account might arouse suspicion & questions might be asked. 

As I say, depends on the lender & what other savings you have & what you have to show.

However, it does beg the question that if your are £2k short for the deposit do you have monies for all the incidentals like survey costs, solicitors fees & removals - not mentioning stamp duty if you miss the Sept 30th deadline. If you have a few thousand put by for this  (and you really should) then cant you just use this money towards the deposit & your nan subs you for the incidentals as & when. 

The mortgage & exchange deposit are the ones most heavily policed. You will need to  show both the lender & the solicitor that you have the required amounts when asked.

jacob_CAFC said:

golfaddick said:

jacob_CAFC said:

Not sure if this is the right thread but wondered if someone could help me. Me and my girlfriend had an offer accepted on a house yesterday and we are a few ££ short of a 15% deposit. My gf's nan has said she will lend us the £2000 that we need but as she is an old lady, she wants to give it to us in cash. Is this gonna cause an issue when they  come to checking our deposit?

IFA & mortgage broker here......

Depends on how its done, which lender you apply to & if you are using a broker.

Officially your nan should complete a "Gifted Deposit" form which says that the £2k is an outright gift, that it is never to be repaid & that she has no financial interst in the property.

Unofficially, she could just give you the £2k & you simply put it into your savings account and say nothing. Although lenders will want to see proof of your deposit its very rare that they ask where all the money had come from. If they can see regular payments going in from your main bank accounts then thats usually enough. Obviously a random £2k just appearing in an account might arouse suspicion & questions might be asked. 

As I say, depends on the lender & what other savings you have & what you have to show.

However, it does beg the question that if your are £2k short for the deposit do you have monies for all the incidentals like survey costs, solicitors fees & removals - not mentioning stamp duty if you miss the Sept 30th deadline. If you have a few thousand put by for this  (and you really should) then cant you just use this money towards the deposit & your nan subs you for the incidentals as & when. 

The mortgage & exchange deposit are the ones most heavily policed. You will need to  show both the lender & the solicitor that you have the required amounts when asked.

Thanks Golfie, really appreciate the advice. 

We will have a chat with our advisor next week and see what he says. I didn't want to mess anything up by just accepting the money and then when they come to audit we get in trouble. They have been asking for bank statements so didn't just want £2k showing up in cash as might look dodgy. 

We don't need to pay stamp duty on the property as it's less than 300k. We both still live at home so in the next few months before we are able to move in, we will be able to get the money for all the other things we need to pay for. It's just about now proving we have the 15% so we can get a better mortgage deal but won't able to get the money for that until mid August as again they have asked for proof of deposit. 

You can still get the 85% LTV deal without having to show proof of deposit at the moment. The lender might not be prepared to go to Offer without seeing documents or statements showing the 15% deposit but that shouldn't stop you applying for said mortgage now.

@Rob7Lee what's the deadline for the FTSE predictions?  I'd thought you'd mentioned the 21st, but seems like a lot of people have committed early with their fingers in the air 

TelMc32 said:

@Rob7Lee what's the deadline for the FTSE predictions?  I'd thought you'd mentioned the 21st, but seems like a lot of people have committed early with their fingers in the air 

I said end of July. But nor many of the originals left to come in!

LargeAddick said:

jacob_CAFC said:

Not sure if this is the right thread but wondered if someone could help me. Me and my girlfriend had an offer accepted on a house yesterday and we are a few ££ short of a 15% deposit. My gf's nan has said she will lend us the £2000 that we need but as she is an old lady, she wants to give it to us in cash. Is this gonna cause an issue when they  come to checking our deposit?

Your Solicitor will also want evidence of where the funds have come from. Also, is this a new build, buying directly from the builder? If not 99% of deposits are just 10% these days.

I think the OP meant the deposit needed to buy the house, not the one needed at exchange. ie, they can get an 85% mortgage & has 15% to put down. 

Rob7Lee said:

TelMc32 said:

@Rob7Lee what's the deadline for the FTSE predictions?  I'd thought you'd mentioned the 21st, but seems like a lot of people have committed early with their fingers in the air 

I said end of July. But nor many of the originals left to come in!

OK, thanks @Rob7Lee I'll keep my powder dry for a couple of weeks.  When news gets out that I am retiring, the Barclays share price could slump or rocket depending on your viewpoint!!!  

golfaddick said:

LargeAddick said:

jacob_CAFC said:

Not sure if this is the right thread but wondered if someone could help me. Me and my girlfriend had an offer accepted on a house yesterday and we are a few ££ short of a 15% deposit. My gf's nan has said she will lend us the £2000 that we need but as she is an old lady, she wants to give it to us in cash. Is this gonna cause an issue when they  come to checking our deposit?

Your Solicitor will also want evidence of where the funds have come from. Also, is this a new build, buying directly from the builder? If not 99% of deposits are just 10% these days.

I think the OP meant the deposit needed to buy the house, not the one needed at exchange. ie, they can get an 85% mortgage & has 15% to put down. 

Aaah, got you.

Im in......... 7612