Proof of funds for a cash buy

sonastin

A mortgage-buyer has to start the process of getting a mortgage long before the vendor is committed to the sale. Which is why the fantasists always claim to be cash buyers. You can be a lot further through the process with a cash buyer before you find that they were never going to be able to buy. At least with buyers who are looking for mortgages, you know that they are geniunely trying to buy.

franklee

Loads of people say they're cash buyers yet once you start digging they aren't. I wouldn't accept an offer without seeing proof. Why not chat to them and see what they'll accept you can always say they can't take copies. I doubt they'd remember account numbers and details enough to do anything with if you just show the paperwork. Not that it's definitive as some accounts don't have statements that often so you could not show the latest one where you withdrew the cash and spent it at the casino, but at least is shows you had that much money on the statement dates. I guess the alternative is to go via your solicitor I was considering that for when I eventually buy so I'd be interested if anyone has done that

The other thing is being careful when to cash things in as interest rates now are low so there isn't anywhere good to put the cash if the sale falls through. I was thinking get just the deposit out, then exchange contracts and only after that terminate longer term fixed rate savings etc ready for completion?

Thrugelmir

pxg638 wrote: »

Funnily enough, she does not have all that in one place, it is in numerous bank accounts, shares etc.

Surely not many?

DizzyDasher

We were in this situation - I think it's reasonable for the seller to want you to prove you can proceed before they take it off the market - it's just the equivalent of a mortgage agreement if you were borrowing the money.

What we did was print out internet statements from the various savings accounts, blanked out confidential information (e.g. account numbers, sort codes) and just left the totals and our name/address etc. We did wonder whether they would want original statements from the bank, but they seemed happy with internet print outs, so I would try that first.

Ours came to a bit more, and we didn't want them to think we could up our offer, so we also put in a front sheet setting out roughly our other costs (stamp duty, moving costs, solicitor/survey, etc.) and showing that it just covered everything.

neverdespairgirl

You could get a letter from your solicitor confirming the total funds?

Giddytimes

When my boyfriend sold his flat recently we were pretty shocked when one viewer turned up armed with copies of his bank statements showing he had enough in his current account to cover more than double the asking price. He was quite willing to leave a copy with us-we declined to keep it!

I'd take the route of taking statements/internet prints showing the bulk of the money into the EA, they won't tell the vendor exactly how much money your sister has and they shouldn't ask to keep copies. It's normal practice.

greatgimpo

taxsaver wrote: »

Then fine it'd be your loss! :rotfl: The buyer also 'has a lot riding on it'.

It'd be our loss as you're not buying the house you want.

GAH

From past personal experience, If I had a pound for everytime somebody had told me that they were a cash buyer for it to develop that they then actually needed a mortgage, then id be rich by now.

Perfectly normal for proof to be required, Anyone that wouldn't be prepared to prove their funds, normally has something to hide.