Scrutiny of my deposit for mortgage

Iwant2boptimistic

Dave_Ham wrote: »

I would suggest a letter from her confirming the gift status will be sufficient.

It is unlikely they will request a rationale as why, but dependent upon the lender of course.

If you are buying this place as an investment, with no dependents you need to consider if life insurance is essential for you?

Good luck

Would the solicitor require a letter as well as the lender? Is everyone just duplicating the same thing or are they reporting/checking on different things?
I agree with your point about life insurance. It's been my decision really so that I can leave the family more if I die - but of course I may live lol:)

Thrugelmir

Iwant2boptimistic wrote: »

Would the solicitor require a letter as well as the lender?

The solicitor represents the lender as well as you for the transaction.

The solicitor will verify the source of deposit etc and inform the lender accordingly. The lender will make any decision.

Dave_Ham

It will pretty much all service the same need, to protect the broker, solicitor and most importantly the lender.

Some lenders may want to see visibility of this insurance monies before they offer the mortgage, some will not.

Iwant2boptimistic

Thrugelmir wrote: »

Unfortunately does not provide any evidence as to the source of funds or the fact that your sister is in a financial position to repay you the informal loan you made either.

So what are you saying would provide evidence of the source of funds
& the fact my sister is in a financial position to repay me the informal loan I made her?
Isn't the evidence of the source of funds the insurance policy and the corresponding credit for the same amount in my Halifax account? They match and we will have the records when the payment is in there in 4 weeks time. Or are you saying the evidence is something else? Isn't the fact my sister is in a financial position to repay me the informal loan I made to her that very same Insurance policy document and credit in my bank? I'm a bit confused by your comment.

Iwant2boptimistic

Dave_Ham wrote: »

It will pretty much all service the same need, to protect the broker, solicitor and most importantly the lender.

Some lenders may want to see visibility of this insurance monies before they offer the mortgage, some will not.

Thanks Dave. I can get a letter no problem - is there a template somewhere she can use? Sad they may want to see the money in there before the offer as I might not achieve that. I anticipate the money will be in there in 4 weeks time. I would never agree with the solicitor to exchange contracts until I have that money safely in the account as I realise I'm committed to buy then. It's a very reputable insurance company and the policy payment paperwork has been issued so I am going to get the money. I hope my lender doesn't want it before offer as that will mean I will have to face the vendor and say I can't carry on when I've just secured a price with them. A bit embarrassing really although I would face them because its not right to string people along.

Thrugelmir

The solicitor won't exchange contracts until they have cleared funds sitting in their clients account ( to your credit).

Iwant2boptimistic

Crashandburn wrote: »

That's the format the lenders request for a gifted letter. Solicitor will do the money laundering aspect of the source of funds but some underwriters like to see details of it before agreeing the mortgage ie Santander

Thnx for the bit about the format of the letter. I'll check with my mortgage adviser what's going to be acceptable to my lender. Just re read this and saw you used Santander as an example. Don't mention them! It's not with them thank goodness but what on earth has happened to their underwriting? Tried to get a further advance on my uncles mortgage with them and he's an excellent credit risk but goodness they are so risk averse lol! Moved it elsewhere in the end!

Iwant2boptimistic

Thrugelmir wrote: »

The solicitor won't exchange contracts until they have cleared funds sitting in their clients account ( to your credit).

Thanks T. Would you have a look at my post about one of your previous comments about proof etc? think it was post number 15. Thnx.