First time buyer & mortgage deposit in shares...help?

clawless89

Hello,

I am just wondering if anyone can offer me some advice. Myself and my partner are first time buyers looking to apply for a mortgage within the coming weeks. Over the past year we have managed to save £25k for a deposit, however it is all in shares. Although we can take this money out now, it would grow a lot more if we left it as shares in the company and took it out only when we were about to make an offer. My question is, would we be able to show the mortgage company our share certificate and get a DIP and just withdraw the money when we decide to make an offer? Or would we just have to take the money out when we apply for a mortgage?

Also just a side note; our combined income is £39500 and looking to borrow £150k.

Thank you.

GMS

You will only need to withdraw the funds in time for exchange of contracts. You may be asked for proof of deposit by the lender but you can show this.

Your solicitor will verify where the funds came from as part of the conveyancing.

clawless89

Thank you very much GMS! That's answered my question perfectly.

R_P_W

It may not grow a lot more in the next few weeks. In fact it probably wont. It could also drop in value - so if you need the money for a deposit and it is currently at the level you need maybe you should consider moving it into cash?

Maruka

Hi,
I'm in a similar position, perhaps you could help!
We have had an offer accepted and are going to apply for a mortgage in a couple of days with a £94k deposit. £60k are in our own premium bonds, but £30k is in my mother-in-law's premium bond. Unfortunately, tomorrow she goes away for 3 weeks!
At what stage will we need our mortage deposit? We will happily put down however much is necessary to secure the house, but it just may be that there is a 1 month delay in getting the full mortgage deposit.
I'm aware of the process of exchange - completion etc, but what I'm not aware of is at what point the mortgage needs to be fully available, and what is financially required for the exchange? My wife is calmly saying not to worry as "it all takes time" and it's only 1 month until we have the money, but my worry is that almost nothing can be done without the deposit (or at least access to details about it), and can't really sleep safely until I at least know there is some kind of deposit and the house is fully taken off the market etc!