Maney Laundering

Girt

Edit: just realised the typo in the thread title..

I have just had a DIP (decision in principle) accepted. After being refused a joint mortgage with my girlfriend due to my bad credit history we were advised to apply again but take me off the app.

Our deposit is from some inheritance I have received but according to the bank, me not being a blood relative means I can't just hand over the money..

We told the advisor to say it came from another family member and he was sure they wouldn't check and all will be fine. We are worried now as the whole process is dragging on and if this gets refused then we are well and truly screwed!



So i'm asking two questions-

• Will the bank look into where the money has come from and contact the suggested family member?
• Has anyone known banks to refuse a dip after agreeing it?

Thanks in advance.

beecher2

Bad idea to lie on your mortgage application. I thought banks had to have a form signed to say that the person has made a gift of the deposit so you could be in big trouble. Someone else will know for definite.

It is pretty common for banks to give a DIP and then not offer a mortgage - you've no guarantees at all at the moment, especially as you haven't been up front with them. Have you at least told the family member what you've done?

GMS

Even if you get a mortgage offer the solicitors will need to conform thesorce of deposit to the lender. If the lender then decide you lied to them they will wothdraw the offer and potentially report you meaning you could be unable to get a mortgage or finance in the future.

Lying is not a good idea. Failing to disclose is fraud.

Girt

beecher2 wrote: »

Bad idea to lie on your mortgage application. I thought banks had to have a form signed to say that the person has made a gift of the deposit so you could be in big trouble.

Well it was that or walk away as they seem to be adament about it. I don't understand why it has to be a blood relative? Sounds stupid to me tbh..

beecher2 wrote: »

It is pretty common for banks to give a DIP and then not offer a mortgage - you've no guarantees at all at the moment, especially as you haven't been up front with them.

Yea I figured as much as the dip came back really quick, will cross my fingers and hope they stick to their word and follow it up. I really didn't see that there was anything else to do other than suggest a family member as they point blank won't allow the money to given by me..

beecher2 wrote: »

Have you at least told the family member what you've done?

Yes

kingstreet

Girt wrote: »

I really didn't see that there was anything else to do other than suggest a family member as they point blank won't allow the money to given by me..

Change of lender, so no lies required? This is fairly straightforward with most banks and building societies. They simply ask for written conformation it's a gift and that no repayments will be required.

The purpose of money laundering regulations is to create an audit trail of the source of the funds so an investigation would be easier if needed. It is not to stop people doing what they want with their own money. Lenders make spurious reasons for their policies all the time, so they don't look as unreasonable as they may actually be...

beecher2

Go to see a mortgage broker (or get a new one if your present one advised you to lie). See what options you have with other lenders.

GMS

A deposit from somebody no tnamed on the mortgage but who will reside in the property is not something lenders like generally.

What is the bad credit? Any CCJ's, defaults, misssed payments etc? If so from when?

Have you explored every option for a joint mortgage?

Girt

GMS wrote: »

What is the bad credit? Any CCJ's, defaults, misssed payments etc? If so from when?

No CCJ's or defaults just many missed payments. I assume this is the problem. The loan was over three years iirc settled just last year so I guess its recent enough to be an issue.

GMS wrote: »

Have you explored every option for a joint mortgage?

We didn't have the mortage arranged before we made an offer,we are just trying to get a mortgage arranged as soon as possible so as not to mess the vendors around and run the risk of them putting it back on the market due to us taking too long..

Btw thanks for the helpful, prompt replies, very much appreciated.

GMS

Missed payments an issue with high street lenders but you may be ok with a specialist lender.

Have you got copies of credit reports? Get the statutory £2 ones from Equifax, Experian and Call Credit and give to the adviser. If you can get a joint mortgage then you will eliminate all the problems with the deposit and start to rebuild your credit score with the new mortgage

maninthestreet

Girt wrote: »

Our deposit is from some inheritance I have received but according to the bank, me not being a blood relative means I can't just hand over the money..

Tell the truth - you inherited the money. It's easy to prove this is the case.

Girt

maninthestreet wrote: »

Tell the truth - you inherited the money. It's easy to prove this is the case.

This contradicts GMS' comment.

GMS wrote: »

A deposit from somebody no tnamed on the mortgage but who will reside in the property is not something lenders like generally.

What are the chances of the bank overlooking the whole laundering farce and accept if I can prove the inheritance?