Proof of deposit? & another question

Caleb11

My parter and I live separately at the moment and have both been saving for a house which will go in my name as oh has done credit issues. Every month I take out everything from my bank except money to pay my direct debits. I then budget my cash (I work better with cash rather than card as I can see what I have exactly and I can't overspend.) my first question is the mortgage company want my last 3 bank statements- will this go against me (paying dd but taking everything else out?) any money I don't use cash I then put into my partners bank as he has all the savings. He also has about 7k in inheritance money that he's putting in. So how does this all work. Will they ask for proof of deposit and want proof that I have contributed to it? My dad may also be giving me a couple of thousand as a gift. How does this work. If they all transfer the money into my account will this go against me. I have a mortgage in principal btw & have an offer accepted on a house. Thanks for any help.

kingstreet

Lenders are looking at the conduct of your account over the three month period, rather than what you do with your money.

You'll have a problem with a non-family member contributing to the deposit - be it gift or loan. Get the money in one place in your name and hope you aren't asked where it came from...

On your other thread, an agreement in principle should indicate you'll be granted a mortgage as long as your application is within what you requested in the AIP and there is no alteration to the information you supplied at the outset.

Caleb11

Why will It be a problem? Can you expand? What about money coming from my dad? If I transfer all the money into my account just now will this be ok? When do they usually ask for proof?

kingstreet

Here is an example from Abbey/Santander criteria;-

We will not accept a gifted deposit if:
- provided by the vendor (unless an acceptable new build incentive from the builder/developer);
- protected by a Deed of Trust (or similar);
- the person providing it will be living in the property, but is not named on the mortgage; or
- there is a beneficial/equitable ownership/interest in the property.

An element of caution is therefore required in ensuring other lenders do not take the same approach.

A gift from your father is perfectly acceptable.

Evidence of deposit can be requested by the lender at any time during the application process. The lender may also make the solicitor responsible for obtaining such evidence during the transaction.

Putting the funds in your account may be a solution. However, you may be asked to provide evidence of the ultimate source of the funds.

Caleb11

Is it ok for my dad to give me it in cash or does it need to be sent from his account? Thanks for ur reply

kingstreet

Transfer from account to account is better. Large volumes of cash knocking around are likely to cause you problems when you come to pay in at your own bank, and bowling up to your solicitor's office with a Tesco carrier full of used notes is likely to set the alarm bells ringing.

I imagine you'll find more by googling "Money Laundering Regulations" or similar...

Caleb11

Ok thanks. It's just that my dads self employed and saves in the house as he feels it's safer- something I dont agree with but anyway- I he's planning on giving me cash I could ask him to put it into his bank and then transfer to mine maybe. Would that be ok?