proof of deposit

holly_hobby

What Amnblog is saying is that lenders like to see that the applicant has had the financial discipline to have saved a deposit.

And although I do understand where you are coming from ie that the capital withdrawl is actually retained profit which, you have elected not to draw but left in the business account (to avoid tax on drawings I assume) - this must be communicated to the lender. They must not think that you are withdrawing operating capital out of the businesss or taking a loan from the business, to fund the deposit.

This won't be picked up at underwriting stage, unless you state that the deposit is not from saved capital, but upon ML and deposit assessment it may cause an issue (if the solicitor reports back to the lender, that it has effectively been sourced from the business banking account).

To save this, you may wish to run this past the Underwriters now, rather than get further down the line (with non-refundable fees incurred), and then find the lender isn't happy or doesn't understand/appreciate the basis of deposit and why its neither represents withdrawal of operating capital or a business loan.

Hope this helps

Holly