Proof I have saved part of my deposit required by mortgage company?! Please help!

shirleyshamone

Hi and thank you for any help you can provide. I am a ftb and have been gifted a 25% deposit by my parents. I am self-employed with accounts and have previous bad credit (7 yrs ago). Since then I have had no loans or finance of any sort. I have been refused several mortgages from different companies which has resulted in 6 months of disappointment and heartache over lost houses etc.

Anyway, I have now found another dream house and a mortgage company and have provided all the many and varied documents they want, but just as I was waiting to hear I actually had an offer they decided they wanted proof I have saved £1000 of my deposit myself. Has anyone else experienced this and am I likely to get my offer if I can show a savings account with this money in? I haven't been saving a set amount into the account each month and am worried they won't be satisfied with a balance alone, they will want to see how I've saved it when in truth it's cash I had put aside.

I will update you with a result when I have one but would love some reassurance that I could get a yes on this one it's driving me insane!

Thank you,

Shirleyshamone

property.advert

Surely if you have an income you simply shovel £1000 or more into a savings account from your "salary" ?

Put aside / saved are one and the same are they not ?

handytips

Open up a savings account and deposit a grand in there from your current account. Have they also asked you to get a letter signed by your parents stating that they will not take a second charge over the property or want the gift back. I would also get this letter ready.
Who is the lender and i will be able to help you a little more.

dunstonh

Has anyone else experienced this and am I likely to get my offer if I can show a savings account with this money in?

Its not an uncommon request. It was the norm before the credit boom but largely went away during the credit boom but sensible lending has come back again.

It is there to show whether you have had the financial control to put money aside into savings. Someone who hasnt been able to save money but wants a mortgage is potentially a higher risk than someone who has been saving.