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Deposit - source of funds affect on mortgage application
RetroBob
Posts: 171 Forumite
I have been saving towards a house deposit and have 20% of the cost of the houses I've been looking at buying. Out of the blue my parents said they would give me what amounts to another 5% of that amount. According to several MAs I've spoken to, this takes me to the magical "best rates" level.
When filling out the fact finding documents for the MAs, and looking at solicitors forms, they both ask for the source of the funds. The money will all come from my one account, however technically, most has come from me, and some from my parents. So, are they just asking to check my figures? Or is this something that the lender will need, and finally - if that is the case, as not all of the amount was saved by me, could this affect their likelyhood of lending to me?
When filling out the fact finding documents for the MAs, and looking at solicitors forms, they both ask for the source of the funds. The money will all come from my one account, however technically, most has come from me, and some from my parents. So, are they just asking to check my figures? Or is this something that the lender will need, and finally - if that is the case, as not all of the amount was saved by me, could this affect their likelyhood of lending to me?
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Comments
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I would've thought that they would only ask you for proof that you have access to that money. As long as you can provide evidence of the money being there, then they wouldn't care whether it was from your parents, loan sharks or the tooth fairy
(although i have been wrong on several occasions...)Knowledge is knowing that tomato is a fruit.
Wisdom is knowing not to put it in a fruit salad. :doh:0 -
They would want to know that it was not money that had been lent to you by someone who would want it back................................I have put my clock back....... Kcolc ym0
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Soliciotrs have to ask for the source of funds to satisfy themselves that no money laudering is going on.0
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with the deposit help we got we had to have a statement from them saying the money was a gift i think this was so they couldn't then claim an interest in the house (solicitor recommended this) i don't think the mortgage company have asked us,Yes Your Dukeiness
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Lenders want to ensure the money is from your own funds. They are clamping down on kickbacks from builders etc who offer 'deposit paid' - effectively those were 100% mortgages.0
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