Proof of Deposit

Mozzanov

Hi,

I have been reading up on this a bit and understand it's very important I declare where my deposit came from and show proof of it. Where it came from isn't entirely simple (but legal).

Before I even decided to buy, my mother and her husband (my parents are divorced) gave me some money (they also gave the same amount to my two sisters), completely unrelated to any of us buying a house. Just for whatever we wanted to spend it on. (I think the transfer comes up in her husband's name.)

I also have savings of my own (not in my main current account, which is with Santander) in a Natwest account.

My dad will be giving me a gift, with the actual intent of this being for the deposit. (So it would be a combination of mine and his money.)

I know I will need to provide a letter from my dad, but will I also need one from my mother and her husband? (It's in the same account as my own savings - Natwest, so all the money is mixed up.)

Also, the money was moved from my main current account, to my other account (with Natwest, I use it when I go on holidays or if I'm saving towards something - no DDs, no overdraft, etc). In fact, I have just got a new account (also with Santander, but a 1-2-3 one) and in the process of moving all money and DDs to this new one.

So, will I need to show statements for account #1 showing money going to account #2 and then when I make the single transfer to account #3? Or should I just keep the money where it is right now and show statements for each account?

If it makes a difference, the lender I have approached (all that has happened so far is an affordability assessment) is Newcastle Building Society regarding their 95% LTV.

I've just viewed a house I like a lot, otherwise I would wait a bit longer and then wouldn't need a gift towards the deposit off my dad (still not sure where things would stand with the money I got off my mother and her husband), but doing as much research as I can before moving forward.

DarlyPaws

Do you have a solicitor in mind for the purchase? It is usually the solicitor that looks at the proof of deposit and will tell you if you need any sort of statement from your parents regarding the money.

We are currently in the process of moving home and I have printed out statements of savings for the solicitor to see. They will tell me what, if any, statements need to be made.

Mozzanov

No, not that far (researching about them at the moment and don't have a MIP yet, so no bid made). I was researching the implications of cash gift towards a deposit and then remembered there is still the cash my mother gave me in my Natwest account. As I have always rented, there's a lot I've needed to learn (and still am researching).

Thrugelmir

Mozzanov wrote: »

Where it came from isn't entirely simple (but legal).

Suggest that you have the paperwork trail ready in case its asked for.

Mozzanov

Thrugelmir wrote: »

Suggest that you have the paperwork trail ready in case its asked for.

I understand that (and have all the statements already). The issue is more about the money I've received beforehand as a gift (it could be maybe 2-3 months later when I apply for a mortgage).

Yorkie1

How long ago did you receive the money from your mum / stepfather?

Mozzanov

It was about 4-5 weeks ago (before I considered trying to buy again). It wouldn't be a problem getting signed letters, but with all three name's being different, it might seem odd.