Evidence of deposit required?

easilydistracted

Hi all

I have seen a few threads on here regarding mortgage deposits. Myself and my partner are saving up for a deposit. We are looking to start the buying process around June next year with a 10% deposit, though may look a bit sooner if there are any bargains around and the 95% options with Natiowide are at a survivable rate (have a save to buy ISA at the moment).

Our main saving has only just begun, so significant amounts electronically going from my bank to save to buy are only just starting to show. The spanner in the works is that my Mum will be giving us £2000 during this time from a maturing life insurance policy, and last April just before the end of the ISA year my Dad gave me £5000, with a vague idea it would be towards a deposit sometime in the future. We will be saving about £11000 ourselves.

I wondered if anyone can advise whether I can count the money from my parents as savings, particularly the amount from my Dad in terms of declaring the source of the deposit. The trouble is my Dad is massively anti-establishment and a bit of a conspiracy theorist who is completely mad and unreasonable when dealing with any instutions, private or public. There is no way he will co-operative with any evidence of how the money came to me in the first place and will probably not even agree to sign any disclaimers. My mum will probably be more agreeable, unless it came from an account my Dad's name is on, then this will be a big problem too.

So what I'm trying to work out at this stage is how much evidence the bank will want of savings and their sources and how far back they will want to look at bank statements, plus whether it is legally ok to say the money is savings. It is such hard work saving the money and now I'm worrying we won't be able to get a mortgage when it comes to it (am particularly looking at Co-op, Yorkshire Building Society and Nationwide as a back up)

Thank you all:money:

Gentoo365

They will want to see a bank statement showing a gradual build up of funds.

In your case the chances are it will just look like you saved up for a while and this included mostly regular savings and a few lump sum deposits.

If it does get to them questioning where the lump sums came from then they may ask for letters from both parents confirming that the money was a gift and that they do not wish to take any interest in the property, nor to live in it.

If you cannot get them to sign such a letter then you may need to consider your options.

Basically, take from this what you will. However what the lender will want to see is a bank statement in your name, of a savings account showing regular amounts being added over time.

That's if they even ask.

easilydistracted

Oooh a reply. Happy days, I was hoping that was the answer. My Mum would probably do that, perhaps I can even persuade my Dad to do that under duress. I just saw a post once where one crazy bank was wanting all the bank statements from the parents, not just the applicants. I did think this was unusual. Neither of them would agree to this. Hopefully the whole letter thing won't come up at all.
Thanks very much

Dave_Ham

Do remember that for every 1 issue raised on here, probably 100 mortgages have completed without concern. Obviously they have no need for help on here.

Worst they will ask for is a gift letter as stated, especially given you are also saving yourself.

Santander would be the only lender that may want a bit information, but unlikely from post that you will end up there.

All the best

jungle_jane

When I had to give evidence of my deposit last year, they wanted more details on any lump sum deposit of over £1000...I had to show where that came from. Anything under was okay (this was with Santander). We had quite a large deposit so it was a complete pain to do as I hadn't expected to have to prove each and every deposit of over a grand.

If i was going to do it all again I would try to ensure that I had only one savings account (i had several and this made things complicated) and that where possible I saved smaller chunks of money rather than larger sums that needed a massive paper trail.

harvey115

I have completed last week and my deposit was above £200K, I was only asked to show a statement of my savings. As my account was online only, I forwarded my online banking screenshots.

I am also self employed so recently had been transfering major lump sums, some of which equalling more then £20K a day. As I also provided evidence of my business finances through bank statements, the underwriters were able to match the amounts and not question them any further.

I got mortgage from Clydesdale through a mortgage broker.

mungobella

My experience was that they wanted evidence of savings over the previous six months--how the money got there before that was not queried. That was the solicitor, though--Nationwide didn't actually ask us about proof of deposit (which, of course, doesn't mean they won't ask you!)

harvey115

My solicitor basically sent me a letter to sign confirming that I am paying the deposit money from my own savings. She did not ask for me savings statement at all.

The Lender just before completion (that is after the written offer and exchange as well) asked me for my savings statement.

easilydistracted

Thanks everyone, that is kind of reassuring, although the savings logs will be fine for my current ISA, but only show a lump sum for the majority of last one. Will have to cross my fingers. I tend to be a bit of a worrier about big future plans, can't believe we are getting close to getting a house of our own

DVardysShadow

Bit late to the party. I would spend the money from Dad and Mum - on rent, fuel, whatever [but only money you would spend anyway]. And off the back of that, I would save harder.

easilydistracted

DVardysShadow do you really think this will be necessary? The money from my Mum it would be quite possible to send to the rent and some bills, but the money from my Dad is in an ISA from March, where the money he gave me makes up nearly the whole amount. As were not looking till next year hope that will be long enough to count as ongoing savings, it was not specifically for a deposit but was what kick started us saving. Also, I am trying to save £950 a month from October (if I don't collapse from overwork before then!) and my partner £250. The rent is £750 so if we were 'saving' that amount then the total amount for that month would be neary £2000 so would probably not solve the cumulative savings bit. I'm not intending to touch Sandtander with a barge pole, as I am looking at a mortgage that has some level of ethics if at all possible. Thanks again. Signature is not up to date by the way