Should I declare this before exchange?

NewBe

Hi all, just wanting some advice regarding mortgage offer and house purchase.
Mortgage approved for 80K, 20% Deposit, 2x income multiple, single application.

During the legal process, I was asked for proof of deposit and 6 months bank statement showing the money. The deposit is in a single savings account, with monthly transfers from my current accounts. All was approved and 'signed-off' by solicitor.

However, during the evidence gathering, I downloaded 12 months worth of statements for all my accounts. It was only then that I spotted something which would probably look suspicious to most people, even me!
9 months ago, I deposited about 12k in cash over a 2 month period (all my money). This was done in lump sums of 2-3k at a time, which now looks even more dodgy!!! I have about 25k savings in total, most of which was saved by monthly transfers from my current account.

I am nearing exchange, and am worried if I tell solicitor about this, it could cause issues and delays. I am also worried the bank will see the deposits during their own checks and withdraw the mortgage.

Is this something I should be worried about?

holly_hobby

If the cash deposits were from legitimate souces, is the issue you will have.

H

NewBe

holly_hobby wrote: »

If the cash deposits were from legitimate souces, is the issue you will have.

H

Sorry, didn't quite catch that?

Gary123456790

Holly said if the deposits came from legitimate sources then you dont have an issue. Presumably you can explain where these have come from?

Presumably its not profit from drug dealing / loan sharking / etc?

Gary.

holly_hobby

I think he knows what I meant Gary (from his little grin) .... and therein lies the problem !!

H x

NewBe

Gary123456790 wrote: »

Presumably its not profit from drug dealing / loan sharking / etc?

Gary.

Beggar!!! :rotfl:

But seriousley, its the 'cash' element which worries me. There is no 'proof' where it originally came from.

holly_hobby

This is serious ... if lawfully obtained why isn't it traceable (unless you found it in the street !) ?

NewBe

holly_hobby wrote: »

I think he knows what I meant Gary (from his little grin) .... and therein lies the problem !!

H x

Apologies Holly, the grin was more to do with syntax and cohesion.

NewBe

holly_hobby wrote: »

This is serious ... if lawfully obtained why isn't it traceable (unless you found it in the street !) ?

I usually keep a maximum 10k in cash at home. Before anyone asks is that normal, it is in asian communities. I was just saying how can you prove it came from legitimate sources?

holly_hobby

Yes but the 10k or whatever you hold is from somewhere (unless you print your own) !!

I am wildly assuming that if not from illegal sources, you must be self employed and this is cash receipts from your business ? (which you are going to declare to hmrc under SA :cool:)

If not, and you obviously don't want to reveal its source for personal reasons, you'll be up a gum tree if the solicitor thoroughly performs due diligence under money laundering regs.

Hope this helps

Holly

NewBe

Apologies if my responses didn't sound serious. Sarcasm doesn't come across that well in a forum.

To be honest, I am sure I can come up with multiple tales of how the money came from legitimate sources, but the fact remains I had a large sum of cash at home, which I decided to bank.

I am sure my solicitor saw the regular monthly credit from my salary, then transfers to my savings, and thought all was appropriate.

Is it normal for the bank/solicitor to ask for 6 months of bank statememts, and then later to ask for more going further back?

I genuinely have nothing to hide, but don't want to risk upsetting the lender unnecessarily.