Mortgage company asking me to prove deposit

Betking

Hi All,

Never used this thread so hope I am posting in right place etc but here goes.

I am gifting my Mum £13k to buy a house on Buy-to-Let. Can I stipulate here that I will own no controlling interest in this house and that the money is non interest bearing etc.

The mortgage company asked her to prove deposit which is fair enough with regulatory/moral obligations etc to prove she isn't taking a loan once mortgage is approved. I gave my Mum the money and her mortgage advisor told her not to send statement as it shows a recent inflow so he told me to write letter stating that I was gifting her the cash and it was non interest bearing non repayable and I held no interest in property so I did this.

They came back to broker saying they wanted to see proof of my money and where it came from. I think this is non of their business but I sent a print screen of my bank account anyway.

The broker thinks they are going to check the ins and outs of my bank to make sure I haven't got the money recently from a source that I will need to return it to.

I think they have no right to ask where my money comes from as I have no contractual obligation with them. What are your views on this? Anyone who has experienced this will be good or some super knowledgable mortgage guru

Thanks guys!!

Dave_Ham

This is incredibly unusual as typically the gift letter will suffice.

Is this HSBC by any chance?

latecomer

Bear in mind they have no obligation to lend to your mum either..... Personally I would just let them see what they want if it makes things easier.

Betking

It is Mortgage Works which I personally have 2 mortgages with already.

Issue with letting them see is that I don't keep my money in current account it is invested in unconventional investment vehicles which may or may not be bookmakers. Therefore it'll get all sorts of complicated to prove the money as I'm constantly moving it around.

I just hope they accept the balance as at today as proof.

Betking

latecomer wrote: »

Bear in mind they have no obligation to lend to your mum either..... Personally I would just let them see what they want if it makes things easier.

I understand that so just say no and she can go elsewhere but she have paid fees already which my mum says are non refundable.

Dave_Ham

Unusual for TMW, but you can only submit what you have and see what they say...

martinsurrey

They want to make sure you are not laundering drug money through your mother.

http://www.cml.org.uk/cml/policy/issues/2029

Betking

I understand the issue of money laundering as I work in banking. The money is not cash, it is in my bank account which means that the money is already in the system and has a route from which it comes ie my salary, my property business and my gambling money.

I get their worries but I am not giving my Mum cash, I am moving money around from my bank accounts. What more can they reasonable expect me to show?

Betking

Does anyone think I can phone them direct and get them to ask me exactly what they want to see?