Is proof of Deposit always asked for?

helenftb

Hello

Am currently going through mortgage application, valuation back early last week and fine, however it is taking ages and broker never gets back to me etc... However i'm not jumping and shouting just yet as was told it'll take about 2 weeks. However I'm wondering as they haven't yet asked for proof of deposit (20%).

Do they always ask for this? and what proof do they require? i.e savings statement? what if the money shows as only recently transferred in? do they dig deeper? (lack of specifics here as am worried big brother may be reading :rotfl:)

Thanks in advance

holly_hobby

Proof of deposit aleady in your banking account, is primarily reqd to satisfy money laundering regs, and to also satisfy the lender that you have the capital to be able to complete on the sale and mge as reqd.

Holly

ruggedtoast

I was never asked.

Leon_W

It really depends on the situation.

If you were selling one house and buying another it is probably reasonable to expect that the deposit is coming from equity in your present property so there isn't an issue.

However, if you were a 19 year old buying a house with a £100,000 deposit it is highly likely that you will be asked where that money has come from.

Lenders, solicitors and mortgage brokers all have a duty to prevent money laundering so may ask for proof of deposit to reduce the chances of crime proceeds etc entering the system.

Lenders can have different rules as some like to see that a deposit has come from regular savings and been built over time whereas others will just want to see a bank statement or similar.

helenftb

Thanks guys, I knew there'd be info I should of added, no property to sell, valued at £100,000 20% deposit nicely sat in my bank account, only issue is half of it is gifted by a friend, (not obtained by dubious means!:A) so obviously wouldn't want this to delay things, but so far no one has asked for this.

WinnerWinner_2

I have been in both situations before, I think it just depends on the individual circumstances.

Dunx69

You will be asked for the "giftor" is that a word? to come and sign a declaration to say they gifted you the money if you declare which you should really do

doesnt affect your application