Proof of deposit origin (money laundering etc) - Offset mortgage?

smallpurplepill

Hi all

Does anyone know, when taking out an 'Offset' mortgage do I need to prove the source of all the funds (deposit + initial amount to go into the offset) or for the deposit only?

The KFI was done on the basis of putting a certain amount into the offset at the beginning and the repayments being calculated on that basis - I assume this would need to be paid to the lender at the time / before (??) completion?

I'm more worried about the proof of the deposit / offset as although all my savings are legitimately earned and have done tax return etc where necessary (in addition to PAYE) I can account for the amount of the deposit probably through savings out of salary etc and a sale of shares (I have the P60s etc for all this) but would intend to put "the rest" of my money into the initial offset.

I don't have proof for all of this - I've been working since 1999 (stupidly I didn't keep track of all the payslips etc for the last 12 years but never expected to still be renting or being interrogated by anti-money-laundering legislation this far down the line!) and haven't specifically "earmarked" money for a deposit, I just had one current and one savings account. I also had electronic-only payslips at a previous employer (left about 2 years ago) and cannot request paper copies of these now so the only proof I have is the P60s/P45 and bank statements showing the money going in.

Also how far do they go into the enquiry process - e.g. my savings from salary are legitimate but I don't want my employer to know I am looking at buying a house so would prefer if they don't contact the employer and just check the payslips etc.

Please can anyone answer? I haven't asked at the bank or a solicitor directly in case I am flagged up on some database of "dodgy" people just for asking! (I'm not involved in any dodgy dealings, just very paranoid.)

vacheron

I wouldn't worry too much. When we got our offset (Barclays) they just asked where the deposit was coming fron and I said "savings". There were no further checks performed.

With regard to the additional funds you are offsetting they won't ask as the key facts calculation was probably just a personalised calculation to give you an idea what the monthly payments would be with the amount of savings you stated you were planning to offset at the time. There is no requirement to actually offset these funds, nor to transfer any of it via your solicitor at exchange/completion. We told the Barclays advisor we were initially not offsetting anything in the hope of negotiating the product fees down if they thought we would be paying them a lot of interest, then when the offset was live we offset 85% of the mortgage value within the first week from a number of different sources. No questions from the bank, no phone calls, nothing.