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Is the Deposit source critical?

darkvader
Posts: 267 Forumite
We have just begun the process of buying our first home and a thread I read on here made a mention that some banks scrutinize the source of the deposit fund
We own a property in my previous country of citizenship. We will be selling this property, paying all relevant taxes and then remitting the money to our account in the UK. This amount will be close to £50k though we plan to use about £30k only for the deposit
So
1. Will it suffice to tell the banks that the deposit is coming from a flat sale outside the UK? Will this be an issue as we are literally not a 'First Time Buyer' any longer
2. We should by that time have saved about £20k from our current incomes. Will it be easier to just use those funds?
3. We can also show that we have been in constant employment for the past 6 years so saving £30k for a deposit is simple mathematics. The only issue is we will get this huge sum as a single international deposit - of course it will be all legal via banking channels. It is legal to invest outside the UK but then I am not very sure
This is quite confusing and wanted to know if it's likely to cause any problems. I am planning to go down to HSBC and post this question - after all, the money will be sent from HSBC account from our home country to our account here. Is there a potential problem about the source of the deposit we put down towards our home?
Thanks
DV
We own a property in my previous country of citizenship. We will be selling this property, paying all relevant taxes and then remitting the money to our account in the UK. This amount will be close to £50k though we plan to use about £30k only for the deposit
So
1. Will it suffice to tell the banks that the deposit is coming from a flat sale outside the UK? Will this be an issue as we are literally not a 'First Time Buyer' any longer
2. We should by that time have saved about £20k from our current incomes. Will it be easier to just use those funds?
3. We can also show that we have been in constant employment for the past 6 years so saving £30k for a deposit is simple mathematics. The only issue is we will get this huge sum as a single international deposit - of course it will be all legal via banking channels. It is legal to invest outside the UK but then I am not very sure
This is quite confusing and wanted to know if it's likely to cause any problems. I am planning to go down to HSBC and post this question - after all, the money will be sent from HSBC account from our home country to our account here. Is there a potential problem about the source of the deposit we put down towards our home?
Thanks
DV
0
Comments
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There shouldn't be an issue with this, as long as (due to the sum) it can be verified as coming from legitimate sources ( re UK Money Laundering regs), of which selling a property you own obviously is, and should be easily documented.
Hope this helps
Holly0 -
You usually need to show proof of deposit for money laundering purposes. Some lenders ask for it all the time, some only if it is over a certain threshold, some if you are a first time buyer.
The source of the deposit is often not a problem. Only if it is a loan or other borrowed money. There has been a lot of chat on the forum about gifted deposits recently but these aren't a problem at all, it's eaither bad broking or less than upfront customers.
If you can show the deposit money in one account that would be easiest.The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0 -
Thank you both,
Makes me a lot better ratifying this. The transfer is an international outward remittance and this cannot be done without first completing all formalities in the country where the money is being remitted from. Now that I think of it, most lenders will understand when I mention the money was a result of international remittance - they 'should' know what it means
Regards
DV0
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