Mortgage Lender want proof of full deposit

harvey115

dilpreetsohanpal wrote: »

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.

You are going through a standard panic mode majority of us goes through before they exchange/complete.

It is entirely your call, if you are confident you can get the remainder of the money from either your current mortgage offer or in worse case scenario some other lender, you should be fine. Buying new builds always causes issues because the fact that you have to exchange a month or two before you complete. In the current financialyy climate it is very tough to keep things stable to a month or two sometimes so it is very stressful scenario.

There are a few things you can do, but still it does not guarante everything.

- Ask the developer to exchange and complete at the same time (I think they will never agree, but you might get lucky)

- If you are going through a broker, ask them to also consider an alternative. So that if (god forbid) the time comes and your lender declines, you have another lender to apply for. Just ask your broker to see if you are able to get mortgage through another lender if and when necessary. Sor of a backup plan

- Ask the developer to refund the deposit and keep the admin fee as a charge, in case things fall through. I do not think the developer will agree to this,. but you can try.

- If you do not feel comfortable at all, then you may want to skip this purchase.


I would say, if you are too stressed you should ontact a broker and explain them your situation.

Hope this helps.

dilpreetsohanpal

Hello Everyone,

I am little relaxed today as Builder has agreed to exchange contract on reservation money £1000 and Completion is due to happen in Dec 2012. So I can now have some good night sleep as I have NO risk of losing deposit in the event of mortgage is withdrawn.

I am still in talks with builder to have "long Stop Date" in the contract for sale.

I will keep posted how it progresses here.

Thanks All for your suggestions

harvey115

dilpreetsohanpal wrote: »

Hello Everyone,

I am little relaxed today as Builder has agreed to exchange contract on reservation money £1000 and Completion is due to happen in Dec 2012. So I can now have some good night sleep as I have NO risk of losing deposit in the event of mortgage is withdrawn.

I am still in talks with builder to have "long Stop Date" in the contract for sale.

I will keep posted how it progresses here.

Thanks All for your suggestions

That is definitely a good one. Due to the lack of buyers I think the developers are trying every trick in the book to be able to secure a buyer. Exchanging on reservation money is a brilliant one as well.

Best of luck with your purchase.

dilpreetsohanpal

Hi All,
Today I managed to get an agreement on "LongStop date" as 31-Jan-2013.

So I guess major failure points are secured now.

I am exchanging this monday.

Thanks

sefilby

We would like to buy my grandmothers property estimated £230,000. She had planned to sell @ £200,000 (imagining a quick sale £190,000 actually in the bank)

Could anyone advise, my husbands employer has suggested an option for us to get on the housing market. He would lend us £35,000 to be used as a deposit, which would be paid back upon my grandmother receiving the sale proceeds (she has agreed to this as she just want to sell up now).

Queries is this even legally possible? How would we submit proof of deposit?

gazfocus

sefilby wrote: »

We would like to buy my grandmothers property estimated £230,000. She had planned to sell @ £200,000 (imagining a quick sale £190,000 actually in the bank)

Could anyone advise, my husbands employer has suggested an option for us to get on the housing market. He would lend us £35,000 to be used as a deposit, which would be paid back upon my grandmother receiving the sale proceeds (she has agreed to this as she just want to sell up now).

Queries is this even legally possible? How would we submit proof of deposit?

Blimey, this is a thread from the past...

If your husbands employer is loaning you the money, most lenders won't like this as you generally cannot use 'loans' to fund a deposit. However, if your husbands employer says he's 'gifting' you the deposit, that would be ok, but your husbands employer would need to be happy confirming the £35k is a gift an non-repayable. You can then pay your husbands employer back after completion.

However, I am not at all sure of the legal implications nor am I sure where this would be classed as mortgage fraud.

fewcloudy

sefilby wrote: »

We would like to buy my grandmothers property estimated £230,000. She had planned to sell @ £200,000 (imagining a quick sale £190,000 actually in the bank)

Could anyone advise, my husbands employer has suggested an option for us to get on the housing market. He would lend us £35,000 to be used as a deposit, which would be paid back upon my grandmother receiving the sale proceeds (she has agreed to this as she just want to sell up now).

Queries is this even legally possible? How would we submit proof of deposit?

http://www.flamewarriorsguide.com/warriorshtm/necromancer.htm


Better to start a New Thread I think


fc

kingstreet

sefilby wrote: »

We would like to buy my grandmothers property estimated £230,000. She had planned to sell @ £200,000 (imagining a quick sale £190,000 actually in the bank)

Could anyone advise, my husbands employer has suggested an option for us to get on the housing market. He would lend us £35,000 to be used as a deposit, which would be paid back upon my grandmother receiving the sale proceeds (she has agreed to this as she just want to sell up now).

Queries is this even legally possible? How would we submit proof of deposit?

Why don't you just do it as a concessionary purchase, using the £30k price reduction as your deposit?

This route seems to overcomplicate things unnecessarily.

Start your own thread too, don't "Lazarus" dead stuff.