Deposit source question

Phunky

FraudBuster wrote: »

3.2 Value

The deposit is being paid by someone other than the purchaser. You should ask why, where the money is coming from, and whether this information has been properly disclosed to the lender.

http://www.lawsociety.org.uk/productsandservices/practicenotes/mortgagefraud/2607.article

So as long as the lender knows and is happy there should be no problem.

Phunky

Hi all,

Ended up telling my solicitor that we was not happy to write a letter stating the loan was a gift as it really did unsettle my father, so currently waiting on mortgage company to get back to us but as the completion date is suppose to be 2nd June i'm starting to worry things could be delayed

Is there anything else that could be done? Does the deposit have to be paid in full on exchange/completion, is it possible to pay part of the deposit and then the rest shortly after (i'm assuming not ). The only thing I can actually think of now is paying just 10% (£12,700) for the deposit then making an overpayment on 25th June for £8k but that means i'll be close to my allowed overpayment limit for this year and had planned to pay around £10-15k at end of the year when I get my final retention bonus.

kingstreet

What have you told the lender?

Phunky

I've not been in touch with the lender since the initial application, where I did state that depending on when we bought the property (ie: before June 25) I would be borrowing up to £15k from my father to cover part of the deposit. It was never raised as a point of concern as i've got no debt and earn more than enough to easily cover the mortgage repayments and that's before including my wife's income (80k total income) although she's not on the mortgage application due to her debts causing our joint application to fail.

Phunky

Also does anyone think it would be more harmful if I contacted my mortgage company myself as my solicitor hasn't exactly been great and I worry that she may not explain the situation correctly, I just don't want to cause more problems doing so.

Thrugelmir

The solicitor isn't just yours as they represent the lender as well. One assumes the solicitor will relay to the lender the information you have given. So no need to become involved.

Phunky

Thrugelmir wrote: »

The solicitor isn't just yours as they represent the lender as well. One assumes the solicitor will relay to the lender the information you have given. So no need to become involved.

I only ask as I have been having problems getting my solicitor to communicate with the other vendors and there solicitors have also complained about this too.

Thrugelmir

Phunky wrote: »

I only ask as I have been having problems getting my solicitor to communicate with the other vendors and there solicitors have also complained about this too.

Maybe the solicitor is stalling on exchange. Due to the matter that has arisen, in the eventuality your mortgage offer is withdrawn. So in effect they are protecting your interests.

Phunky

Thrugelmir wrote: »

Maybe the solicitor is stalling on exchange. Due to the matter that has arisen, in the eventuality your mortgage offer is withdrawn. So in effect they are protecting your interests.

Unlikely as the communication problems where there way before she got in touch with my mortgage company regarding the source of part of my deposit.

noodle

I'm a little confused. Has anyone, at any point, told the lender the truth? It is a short-term loan to be repaid with guaranteed future income on a known future date.

Are you looking for a solution to a problem that might not even be a problem at all?