My first time morgage application _pale_

holyoak

NewBe wrote: »

From recent experience, expect your solicitor to ask for 3/6 months bank statements to verify where the deposit is coming from. They will want to know how you were able to gather 10k in cash, expecially when you have a history of being overdrawn.

What am i best saying? I have heard of parents given a cash deposit and having to sign agains it. can i just say that or even if i have sold a car privetly? I have always saved money in my house because i have been caught out when wanting to buy a car. I buy cars some times,mainly classics. I do them up and sell them on. Alot of people like cash payments and you can save time and hassle. This has been sprung on me in the last week and its moving so fast

notanewuser

holyoak wrote: »

What am i best saying? I have heard of parents given a cash deposit and having to sign agains it. can i just say that or even if i have sold a car privetly? I have always saved money in my house because i have been caught out when wanting to buy a car. I buy cars some times,mainly classics. I do them up and sell them on. Alot of people like cash payments and you can save time and hassle. This has been sprung on me in the last week and its moving so fast

Oh dear. Hope you've declared that to the tax man.

holyoak

notanewuser wrote: »

Oh dear. Hope you've declared that to the tax man.

why would i declare it? im not running a buisness or anything?
I do it as a hobbie. I may be a year or two doing a car. My hobbie is motorsport and i compete. I sometimes have to buy tyres or parts and a event and that can cost anything up to 2k an event-all this is going to stop now and my car and spares are going to be sold. I have done nothing illegal,but i understand they will want to know why i havent saved into my account and where the money has come from. god i have been so stupid looking back :doh:.how can i avoid problems?

notanewuser

holyoak wrote: »

why would i declare it? im not running a buisness or anything?
I do it as a hobbie. I may be a year or two doing a car. My hobbie is motorsport and i compete. I sometimes have to buy tyres or parts and a event and that can cost anything up to 2k an event-all this is going to stop now and my car and spares are going to be sold. I have done nothing illegal,but i understand they will want to know why i havent saved into my account and where the money has come from. god i have been so stupid looking back :doh:.how can i avoid problems?

Buying cars to do up and sell on for a profit is a business, same as buying in charity shops and selling for profit on eBay. It doesn't matter what the profits get spent on. You should have registered as self employed and paid tax on the profits.

I doubt there's any way around it.

holyoak

Can i just get my grandparents to gift the 10% deposit to me and i give them the cash?

NewBe

holyoak wrote: »

What am i best saying? I have heard of parents given a cash deposit and having to sign agains it. can i just say that or even if i have sold a car privetly? I have always saved money in my house because i have been caught out when wanting to buy a car. I buy cars some times,mainly classics. I do them up and sell them on. Alot of people like cash payments and you can save time and hassle. This has been sprung on me in the last week and its moving so fast

Not sure about gifted deposits, you would need to speak to your bank/mortgage advisor. You would be borrowing money from family, to pay towards a purchase from another family member.

Regarding your hobby. Been there, done that. As long as you haven't been buying and selling cars every few months, as well as owning another, you could always say you were doing it to 'upgrade' your own car.

Thrugelmir

Gifted deposit and unsecured debt along with regular overdraft usage are a rather toxic combination for majority of mortgage lenders. As indicates a lack of control over personal finances. A mortgage is in essence a lifetime committment that needs to be paid every month on time for 25 years.

As a start I would suggest using your "cash savings" to clear your loans. This would then improve your overdraft usage by reducing your outgoings.

notanewuser

NewBe wrote: »

Not sure about gifted deposits, you would need to speak to your bank/mortgage advisor. You would be borrowing money from family, to pay towards a purchase from another family member.

Regarding your hobby. Been there, done that. As long as you haven't been buying and selling cars every few months, as well as owning another, you could always say you were doing it to 'upgrade' your own car.

Unless it was in addition to running another/other car(s). Which it sounds like it was.

holyoak

No i dont do it every two months or less. I sold a car last month that i have had for two years. I was payed cash for that. I have also sold spare parts the last couple of weeks and a race engine i had as a spare. I cant go down the bank now and pay the money in as that will look dodgy wont it?

NewBe

holyoak wrote: »

No i dont do it every two months or less. I sold a car last month that i have had for two years. I was payed cash for that. I have also sold spare parts the last couple of weeks and a race engine i had as a spare. I cant go down the bank now and pay the money in as that will look dodgy wont it?

If you have any receipts (even hand written) and details of new owners, then if the market value of the sold car and parts is near enough to the 10k, you should be fine.