Proof of Deposit

goldenbo

Hello, and thanks in advance for any help/info, which is required asap!

I have just heard from my broker that I am 99% there with mortgage offer, having had offer accepted on a 2-bed (244,000). This has been requested due to bank statements not showing the required deposit amount.

The deposit is a non-refundable gift from parents, who will hand me the amount as soon as I request, thankfully. However, I am unsure as to the best method to present this to Mortgage company? Will it suffice to get cash and transfer from a seperate bank acc I own (Barclays), into the one I recently used to show 3-months of statments etc (Natwest), and then send/fax over printout of statement showing amount now there?! If that makes sense??

I'm thinking that will be okay, but dont want to mess this up at last minute as am a 1st time buyer and new to all of this madness!

Cheers.

holly_hobby

You could do that, but obviously the date & sudden appearance of a large cash deposit may raise even more questions.

Better to be upfront about this, there are lenders who are happy to accept vendor or gifted deposits (without requiring a further deposit from your own funds) and your lender may actually be one of them - ask your broker.

What you don't want to do is construct a story, which is unravelled by the lender - as they may well wonder what other info provided by you hasn't been factually correct.

So, tell you broker the truth and let him guide you ....

Hope this helps

Holly

_Andy_

goldenbo wrote: »

Hello, and thanks in advance for any help/info, which is required asap!

I have just heard from my broker that I am 99% there with mortgage offer, having had offer accepted on a 2-bed (244,000). This has been requested due to bank statements not showing the required deposit amount.

The deposit is a non-refundable gift from parents, who will hand me the amount as soon as I request, thankfully. However, I am unsure as to the best method to present this to Mortgage company? Will it suffice to get cash and transfer from a seperate bank acc I own (Barclays), into the one I recently used to show 3-months of statments etc (Natwest), and then send/fax over printout of statement showing amount now there?! If that makes sense??

I'm thinking that will be okay, but dont want to mess this up at last minute as am a 1st time buyer and new to all of this madness!

Cheers.

Have you asked the lender?

goldenbo

Thanks for swift reply...the account it will be coming over from (Barclays) has been scattered with transfers to and fro, on the initial accepted statements I sent them (Natwest). Im thinking another one from the same account, albeit for much larger than the usual amounts in the hundreds would therefore make sense to the lender? I believe they have requested the proof just to ensure we actually intend to buy the house etc, and not to make sure I am capable of saving.

It's @ this juncture I will point out that I am in a joint application with g'friend, who has her printout ready from ISA showing her proof of deposit!

The_Palmist

A letter from your parents saying its a non-refundable should do in most cases. Your solicitor might ask for your parents bank statements to check against any money laundering.

You can call your lender's phone helpline and ask this question casually without giving them your details to be sure.

SG27

I've heard that they require a letter from the patents declaring it's a non repayable gift and that they have no interest in the property.

goldenbo

Lightbulb moment here, but surely best idea is to put all into one account, my g'friend's as she has saved her's independently, and answer any questions should they actually be forthcoming!?

I have a letter typed up ready to go, confirming non-refundable gift on my side, but am loathed to go down this route initially as it means yet MORE delay in the overall process! Been one month nearly already to get the offer from company...yawn!?!

staple28

Ask your lender. I wouldnt traner it all into one and show them as a lot of the time its to actually check for money laundering not to make sure you actually have the money ready.

Mine was a gift from my mother and i was told not to transfer it into my bank account as it looks suspicious as a lump sum, they need to see where it has come from. They requested a copy of the bank statement from my mothers account which shows her paying savings into the account regularly.

kingstreet

What is the lender actually asking for?

There's no point concocting all kinds of scenarios of money going here there and everywhere if they have a specific requirement.

Ask them what they need. Supply it to them.

Experience suggests the simplest way to approach something is normally the best.