Does it matter where your deposit came from? Advice please

philgwill

Hi everyone
I'm at the moment going through the motions of getting a mortgage at the moment. Everythings been going fine up till them querying where my savings come from. I'm not a money launder of anything like that, but i told them that it came from savings even though that was a half truth. I didn't think it would matter this much to them but they've got auditors going through my statements and are saying they want proof of where it's come from. The truth is that some of it came from my 21st, some more from my gran passing away and the rest has been saved up. The problem is my dads had hold of it for me and when i needed it to prove i had the momey he just gave me a cheque. Does it matter whether the money comes from parents anyway? Any advice on what i can do please?

Mr._Nice

The problem here isn't neccessarily that the money came partially from inheritance and family gifts, both are relatively common sources of deposits these days, the problem is that you weren't honest from the start.

At this point you are probably best coming clean, the bank is probably more worried that it's really a vendor gifted deposit, which is pretty much lying about how much you plan to pay for the house to hopefully get a better LTV in their (and frankly in the maths) eyes.

That in came in as a cheque not a bank transfer is probably what raised the red flag for them.

Hillfly

Why not just tell that your father has been holding savings on your behalf in his name and that on request he has transferred them into your account via a cheque. That is basically the truth and does not leave you in apostion where you have lied - you just didn't mention your father was holding on to
the savings for you.

The truth is always the best policy in these matters.

koexelek

Hillfly wrote: »

Why not just tell that your father has been holding savings on your behalf in his name and that on request he has transferred them into your account via a cheque. That is basically the truth and does not leave you in apostion where you have lied - you just didn't mention your father was holding on to
the savings for you.

The truth is always the best policy in these matters.

I think that is the best thing too.

I think the lenders main concern about the source of deposit ( as long as it isn't drug money or something :eek: ) is if you have borrowed it from someone else.
This would not necessarily be a problem, but if you had to pay it back to someone, this would probably affect the amount the lender would lend, due to affordability

philgwill

Thanks for all your help guys. I phoned them up and told them that my dad had been holding onto it for me and how i actually got it. I spoke to a very nice lady on the other end and she told me that all i'll need then is a letter from my dad saying that he's 'gifted' it to me and there's no repayments or anything like that