Mortgage Lender want proof of full deposit

harvey115

I was also asked by my lender about the deposit money as they did not checked it thoroughly the first time around. They asked me about my deposit after I exchanged, so I was a little nervous. However I have full track of my savings as they are all in my account since the beginning and very easy to tracj through my salary.

There is a far too long gap between the exchange and completion which is dangerous. I would not go more then two months gap myself between these stages. I have also exchange just under a month ago with a NewBuild and this Friday I am expected to complete (fingers crossed all will go well).

I suggest you speak with the developer again and ask them to exchange a month prior to completion. Since you must have already paid your reservation amount you can still argue your case. Your gap is a bit too long.

Also your mortgage offer may expire by the time you come closer to completion, so it makes sense to exchange nearer the completion date.

digitalphase

Do Halifax require this? It wasn't mentioned to us.

harvey115

digitalphase wrote: »

Do Halifax require this? It wasn't mentioned to us.

If the source of your deposit has been mentioned during the application process and you are able to prove that through your bank statements (online or paper), you should be fine. Halifax may ask it later if required, but it all depends on what level of checks the lender would go for.

digitalphase

harvey115 wrote: »

If the source of your deposit has been mentioned during the application process and you are able to prove that through your bank statements (online or paper), you should be fine. Halifax may ask it later if required, but it all depends on what level of checks the lender would go for.

Yeah we have told them about the deposit and the advisor has underwritten it herself, so will she ask for proof further along when after the survey is done tomorrow, she says the full offer will be in the post?

We did send proof of the 10% to our estate agents who were liasing with our broker, but we haven't gone through the broker in the end as Halifax offered us a better deal. Though we now are doing a 15% deposit.

harvey115

digitalphase wrote: »

Yeah we have told them about the deposit and the advisor has underwritten it herself, so will she ask for proof further along when after the survey is done tomorrow, she says the full offer will be in the post?

We did send proof of the 10% to our estate agents who were liasing with our broker, but we haven't gone through the broker in the end as Halifax offered us a better deal. Though we now are doing a 15% deposit.

As long as your deposit money is available with proof, you do not need to worry about this. The lender may ask for proof even after the written offer, it all depends on their level of checks.

You do not need to get nervous, just keep at hand the information and supply if asked.

Best of luck

dilpreetsohanpal

Hello Guys,

Thought I will share my full experience. Just got a call from Mortgage company, telling that Bank (Abbey) has once again approved the mortgage.

They are happy to accept the money(Proof of Deposit) in Foreign Banks , Foreign Post office and Gift letter from Parents abroad in foreign currency.

I was more worried as my Visa (Tier1) is due to expire in Apr-2013. So I guess all worst combinations were in my loan file.

1. Foreign National.
2. Limited Visa (however will be extended)
3. 5% gifted deposit from Builder
4. 20% (My share of Deposit)
5. Proof of deposit Not from the UK Banks.

I guess I was just lucky. But a hugh question to all the Guru's here. Is Buyer legally protected if Lender decides not to lend the money for any reason. Do I get some one to Guarantee that I will not loss my 10% deposit money to Builder.

Good Luck to everyone.

Thrugelmir

dilpreetsohanpal wrote: »

Do I get some one to Guarantee that I will not loss my 10% deposit money to Builder.

Totally at your risk.

jamesd

Your legal protection comes from not exchanging contracts and paying a deposit until you have a full and complete contractual mortgage offer, not just an agreement in principle. Your solicitor should normally not accept you exchanging contracts until this is in place, particularly in cases like yours where there's a substantial risk of problems.

A lender can still withdraw the money between exchange and completion but that normally happens only if there is some change in circumstances, like taking out a loan between the two dates or something odd showing up on bank statements if they ask for updated copies of those. Lenders do make such requests for more information between exchange and completion sometimes.

dilpreetsohanpal

Just got an email from my MA, telling that she cannot guarantee that Abbey won't pull out of mortgage from now (03-Sep Exchange Date) and completion Date (31-Dec-2012). I am still waiting for my solicitor to repsond on what are my legal rights in the event of mortgage being declined.

Builder is not ready to push the exchange date any further. How can I best safe guard my money (20000 GBP) if abbey rejects mortgage. My application was approved twice (First application approval followed by withdrawn by auditor for more docs and than approved again in 48 hrs). I am just afraid if this happens again.

HELP and SUGGESTIONS Please.

dilpreetsohanpal

My Solicitor has confirmed in event of bank pulling out of the Mortgage deal before completion, I would risk losing £20000.

Just to be clear, It is not Mortgage in Principle, I have proper formal Mortgage Offer. How likely is that bank after they have checked my application twice in 25 days to be picked up for any further reviews.

I have no additional loan applied and Credit score is 938 on Credit expert.

I have even called NHBC customer Service they cannot help in such event as they come into action once the property in in your name.

There must be some sort of governing body safeguarding the interest of buyer. Its seems either I am just panicking or no one has asked these question before...

Suggestions please.. I have 7 days left before I move ahead or call it off.