Mortgage Deposits

gilly33

I've recently sold my family home that was in my husbands name. The money is sitting in his high interest account waiting to invest in more property. I've found a property and been asked to present 3 months bank statement to a lender. I'm holding off making the application so that I can tidy up my account and not dip into my overdraft this month ( will one month out of 3 make a difference? ) So the deposit is not sitting in my account will this matter when making the application? What I don't want to do is transfer £20K into my account which will probably set alarm bells to the underwriters. I've used the same broker and solicitor so they can verify where the money is coming from but after reading some of these posts I'm getting a bit concerned.

kingstreet

Lenders are looking for good account conduct. Dipping in and out of an arranged overdraft is fine. They are looking at statements for unauthorised borrowing charges and unpaids. None of them and you'll be fine.

There's a growing tendency on here to "overthink" the process and unless you have some serious issues knocking around in the background, normal bank activity is not an issue.

If you are making a joint application, it doesn't matter whose name the deposit is in. If it's in one name, the deposit should be in an account in that name too to avoid issues over the lender feeling the non-applicant may have a financial interest in the property.

monty-doggy

Why would it set alarm bells ringing if you can prove where it came from?

gilly33

Because I just got turned down from one lender looking at big payments going in and out ( I paid £600 off a credit card and paid £570 in property income tax) and I just dont want to create red flags. The property will be in my name and in the past my husband has just transferred it at the last minute rather than it sit in my account. But that was 7 years ago and this is now so who knows what to expect. Are you saying its better to have it transferred before I make the application or can I just leave it until the time is needed?. Would they be looking for the deposit in my account?.

monty-doggy

I just got my official mortgage offer today. They have not asked to see my deposit or source but the solicitors wanted proof. It's only been in my account a few days. I have regular large outgoings and none of my accounts were questioned.

If you we're turned down, don't keep re applying, you will destroy your chances of getting a mgt at all. I'd see an independent broker before taking any more steps.

gilly33

That was always the case. I got turned down once and have requested they take one of the searches off my file which they've agreed to do so. That mortgage was with an estate agent broker who should have provided them with more info at the start. I've now gone back to my original broker who I've worked with for years and have a mortgage in principal. I just want to have everything covered this time round. Thanks for the advice much appreciated.

monty-doggy

Aww I know how frustrating it is. Fingers crossed it works out for you. Good luck

Thrugelmir

gilly33 wrote: »

Because I just got turned down from one lender looking at big payments going in and out ( I paid £600 off a credit card and paid £570 in property income tax) and I just dont want to create red flags.

Honesty is the best policy. Strange behaviour is surprisingly obvious and merely raises suspicion as to the motive. Time is too to expensive to waste.

amnblog

You should definitely speak to your broker if you are working with one.

They will tell you.

The lender does not expect your deposit to necessarily be in your current account. Deposit account is fine. Using an overdraft is fine as long as you are within limits.