Mortgage - Proof of how a deposit was saved

happybroker

checks as to the source of the deposit should be made at every level (broker, lender, solicitor) but the really comical bit about this is that the lender in question will actually allow you to use a loan as a deposit provided the monthly payments are included in the affordability calculation. Below is an excerpt from their lending criteria;

"We can accept deposits provided by gift or loan, but please record full details in the Notes section of Introducer Internet to include:

Gifts Loans Amount Amount Name of donorLender (explain background if not a financial institution) Relationship to applicant Loan terms (e.g. interest rate, payments required) Any protection required e.g.2nd charge (1) Any security required e.g. 2nd charge (1) Any circumstances in which the gift is repayable Confirmation that payments have been factored into affordability."

this, however, doesn't seem to be common knowledge amongst the underwriters of said institution, nor will they entertain talking to you about it.

Pammy

I have not been asked for this. Will they ask? I have saved it myself but not in the last two months. I have saved £500 a month for a long time. Surely I dont need to show them 20 thousand pounds worth of bank statements

happybroker

if you have a large deposit it's quite likely they will ask......save yourself a bit of time and get the stuff together and get it sent in just in case. Well done by the way, all power to you.

luckyfool

VIGILANT22 wrote: »

Quote: (they would expect the solicitor to do any ML checks and confirm the source of funds).

Hmmm........Doesn't your compliance dept ask the same question on your Fact Find or is it a tick box exercise where you don't have to demonstrate?

My factfind asks what the source of deposit is, as do most lenders' application forms. The fact remains I have never seen a lender ask a client to provide documentary evidence of deposit where a property is being sold, and there was sufficient equity in the sold property to cover the deposit.

VIGILANT22

You better get prepared then.......or your network.....

happybroker

I think (or rather hope) that VIGILANT22 has been hacked given that I got this as a PM;

Today, 7:18 PM VIGILANT22
Fantastically Fervent MoneySaving Super Fan


Join Date: Jan 2010
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Status
You need to go and check your status..you're actually a disgrace to the industry............


then questioned it and had no repsonse, despite a pile of new posts.

VIGILANT22

I did indeed respond to you...It is you who is way off mark...I even sent a PM to you........You are a total disgrace to say you're a Mortgage Advisor...

Fees-free face to face advice.

If you prefer face to face, try and find a local broker which offers it; there should be quite a few. Websites like Findapro or Unbiased list brokers, but these aren't all necessarily whole-of-market. . http://www.moneysavingexpert.com/mortgages/best-mortgages-cashback#best

Why independent is mostly irrelevant

Many brokers charge fees AND take commission. However, to call themselves an ‘Independent Mortgage Broker' they must offer an option to pay fees only, with all the commission earned being rebated to the customer.
What tends to happen is this: they offer to let you pay EITHER a "1% fee in full and rebate their 0.35% commission" OR they'll suggest you can just pay a "0.65% fee and keep all the commission". In other words, not a lot of difference.
Worse still, it means a truly whole of market broker fees-free broker (only taking commission), can't call itself independent, even though it is providing the same adv

http://www.moneysavingexpert.com/mortgages/best-mortgages-cashback#bestce and is cheaper.

happybroker

Today, 9:29 PM VIGILANT22
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You should ditch your signature.........
You're a bloody liar and have no idea of the industry..............


this is the only pm I have had from you since the one I posted......I think you need to just calm down and have a really good think about what you are posting. I can make very little sense of the above in relation to any of my posts.

happybroker

Vig, it wasn't me that posted about being independant/ whole of market etc etc. You even pasted some one elses post into one of the PM's you sent me so how that makes me "out of line", "a disgrace" or "a bloody liar" I have no idea, sorry.

I for one feel you make some fair points on here, if a little feisty sometimes. But, frankly, this is a little silly.

happybroker

it's been muted a long time member under a previous name (so goes the legend).

I imagine a 20% ltv mortgage on a home underneath a bridge that lies between 2 sides of the river....one more grassy than the other.