Hi all
Our buyer we believe is using a gifted deposit, but the buying process seems to have ground to a halt over the past couple of weeks, apparently they already had a mortgage cert
Why the hold up?

The buyers use a deposit “gifted” by a third party – usually Parents who have no interest in the property, no expectation of the “gift” being repaid and more importantly for lenders affordability no monthly repayments of the “gift”

which as I though but why the hold up
Read something about negotiating down a price, which we all do, and then using that reduction as a”deposit” not sure how correct this is

Most lenders will not accept a vendor gifted unless the vendor is a close family member lenders will lend on the purchase or property value whichever is lower. They argue even after valuation that the true purchase price is the purchase price less the “gifted” deposit

Could be loads of things but our gifted deposit had to be formalised in the process and some element was drawn up by the solicitor.

My daughter recently bought a house with a ‘gifted’ deposit. The morg company insisted on new paperwork to ensure the giver had no claim on the house. Delayed it a couple of weeks while this was drawn up and signed.

Would not worry about the delay

We had a bridging loan and just needed a signed letter from the other party confirming they had no interest in the process. Held the process up as long as it took me to write said letter and get the person giving the loan to sign it, maybe they have a similar thing.

Though always wondered what would happen if I had just said I had that money sitting in my savings all along. Would anyone know any different/give a damn?