Mortgage Lender want proof of full deposit

gazfocus

We have an offer accepted on a house we want to buy and we have received an AIP today. The AIP is at 90% LTV and we will have the 10% deposit within 3 weeks (we think).

The mortgage lender has said that they need evidence of the full deposit BEFORE they will approve any mortgage application.

We were under the impression that we would only have to demonstrate that we will have the deposit by exchange of contracts so this has thrown us a little.

Is this a normal requirement for smaller lenders? (We are FTB's so it's difficult to know what's the norm).

DannyboyMidlands

Where is the money now?

gazfocus

DannyboyMidlands wrote: »

Where is the money now?

The money we have is in a mixture of my bank account and my ISA account and the money 'to come' is from things sold on ebay (that we're waiting for the transfer of funds from PayPal) and my wages at the end of the month.

The_J

Checking the deposit is usually a money laundering requirement so if you've got a small deposit it is unusual. However it's not that unusual for a FTB as lenders like to check it's not coming from a loan or some other type of debt which would not be acceptable to them.

DannyboyMidlands

gazfocus wrote: »

The money we have is in a mixture of my bank account and my ISA account and the money 'to come' is from things sold on ebay (that we're waiting for the transfer of funds from PayPal) and my wages at the end of the month.

So why not just wait till the end of the month and provide a bank statement and an ISA statement?

The_J

I'm going to guess at "because they don't want to sit on their backside for three weeks while the estate agent is doing their nut at a lack of valuation". :grouphug:

DVardysShadow

gazfocus wrote: »

The money we have is in a mixture of my bank account and my ISA account and the money 'to come' is from things sold on ebay (that we're waiting for the transfer of funds from PayPal) and my wages at the end of the month.

Provide statements for everything including Paypal and a summary which indicates the amount to be made up from your wages? It looks to be the best you can do.

gazfocus

DannyboyMidlands wrote: »

So why not just wait till the end of the month and provide a bank statement and an ISA statement?

The_J wrote: »

I'm going to guess at "because they don't want to sit on their backside for three weeks while the estate agent is doing their nut at a lack of valuation". :grouphug:

Spot on. The estate agents won't take the property off the market the mortgage lender has instructed the valuation. 3 weeks is a long time and I cannot see the estate agents (or the vendor) being happy with that.

DVardysShadow wrote: »

Provide statements for everything including Paypal and a summary which indicates the amount to be made up from your wages? It looks to be the best you can do.

Will try this but may have to resort to the old bank of mum and dad to see if we temporarily borrow the rest.

Presumably the money only has to be in the account long enough to get a print out from the bank, is that right? Will the mortgage lender actually check with my bank?

If so, maybe we could borrow it from the in laws if they can have it back with a week.

DannyboyMidlands

How long has the house been on the market?

DVardysShadow

gazfocus wrote: »

Presumably the money only has to be in the account long enough to get a print out from the bank, is that right? Will the mortgage lender actually check with my bank?

If so, maybe we could borrow it from the in laws if they can have it back with a week.

How much are you short? If it is not a significant amount, perhaps you would do better to be a few bob short at the moment than to start jumping through hoops.

The_J

DannyboyMidlands wrote: »

How long has the house been on the market?

Let's just solve the problem yeah, not try and guess how likely the property is to be bought in the next 3 weeks because frankly, we cannot have a goddamn clue. :grouphug:

Provide the savings statement and say the rest is coming in the next couple of months. Speak to them beforehand so they know what to expect, surprises are bad.