Am i likely to get in trouble or mortgage declined for this?

JustAnotherSaver

I will update when i have an update. Preferably a positive one. I'm just really worried now that primarily this will stop us from getting the house we really really want, but worse than that - any house full stop.

And there's no 'escape' from it. Any other lender will want the same proof & will be given the same statements & be unhappy with the transferring just the same.

So we stay at home & continue the deposit & come to apply in a years time, where they want proof of deposit again & we provide again & we're back to square 1 again.

So we rent, for the rest of our days & continue to have dead money. When we retire, we can't afford to run the house as our income can't keep up with the rental charge, whereas had we paid our house off, we wouldn't have that rental charge (mortgage).

Some may say i'm getting carried away a bit here, jumping the gun. That they may well OK the whole thing.

Yes, none of us know for sure - they MAY well ok the whole thing. From what i've read here though, they've every reason to NOT ok it & every reason to refuse lending, with the same applying to every lender.

Which makes me wonder how we could ever then get a house.

In trying to help our chances & help out family members, i've seemingly just wrecked the entire thing.



As an aside for the record - this isn't just a few pounds. Before i got 'into' banking as encouraged on MSE, i just left my whole savings in a current account. It earned 0% in the end. I deposited a few quid as & when into my ISA which was probably earning 0.5% as it'd existed in the same ISA for years.
Had i not learned about transferring & chasing rates, i would've left all the money in the same 2 accounts years ago.

Chasing rates/offers & depositing more into ISAs & transferring ISAs has literally made me thousands. Without doing this we certainly wouldn't have been in a position to offer on the house we have done.
We would've been able to offer on 'A' house, just not one that we want.

It looks like the hard work could be undone & we may not be in a position to offer on ANY house then, based on this thread.

choccyface2006

We only had to supply 3 months of bank statements to prove our outgoings and deposit ( however our deposit wasn't as large as yours) so maybe the worse case senorio is that you stop transferring money to your sister now and wait for those transactions to drop off you statement before trying a different lender?

Good luck,

Sarah x

holly_hobby

The switching between accounts, if the money is traceable right from initial deposit (ie via salary reunumeration/banking credits etc and not just a load of various cash deposits), should satisfy ML/POCA regs - the lender may also ask for confirmation as to why the numerous opening and closing of accounts, which of course you can explain.

The situ with Sisters account, is a bit more sticky really, and has already been discussed at length (by me especially !) .

My advice, wait until you hear back from the lender.

If they decline, you know what to do ... you stop all this swapping and changing, and importantly you stop feeding sisters account, which means that she'll have to accept that as she can't satisfy the requirements herself, then she simply can't have the 4.25% rate - which should really have been the case form the start, and she'll have to get over it.

But WAIT and see ..... we've discussed worst case scenerio, here so that you arenot floored and will have an understanding, if it all goes a bit pete.

Let us know how it goes, and if you need any more guidance.

Holly x

JustAnotherSaver

I thought about that one just now (waiting for the transactions to drop off), but that's going to take 3 months. I've already made the transfer for August (as i make them on the 1st of the month), so we'd have to wait for September, October & November's statements, so we'd then be in to December.

By which time our sellers will have almost certainly got peed off waiting & pulled out of selling to us.

'that doesn't matter, there'll be other houses' you say. Except, there very likely wont be. We're VERY specific with what we're after, so much so that since about March time, we've only seen 2 houses that meet this criteria & even then they were both a bit over budget. House prices are rising ... faster than our wages.
'so you'll then have to compromise' you say. Yes, it'd be the only option. Except if we got the house we've offered on now, we'd be happy enough in that type of house, in that type of area to stay there forever. If we had to drop to a cheaper house, there'd be too many compromises for us to be truly happy in the house & we'd forever want something else.

With all the hassles of selling a house to buy a house (friends of ours have recently gone through this nightmare & been let down countless times), we weren't looking to ever sell.

I could give 3 months of Nationwide statements, but then it wouldn't show wages as that's to my Halifax.

I could ask payroll to start paying into my Nationwide & then get 3 months clear for August, September & October, but then that's still into November to get a statement showing the all clear.

choccyface2006

I understand you are desperate to get this house and perhaps you still will, but if not and you have to wait a few months for the transactions to drop off your statements then that significantly better than renting for the rest of your days isn't it?

Sarah x

fewcloudy

Although of course it won't be, this thread should probably be a sticky...:(

OP, after 25 years in the housing market and on house number 4, there have been a few occasions when we've missed out on The One for us. Never nice at the time, quite depressing in fact, but in hindsight never as bad as we thought it would be. Something else will come along with your name on it, chin up, by the end of the year your accounts will hopefully look very different than they do today.

fc

JustAnotherSaver

I know what you're saying, but it's hard to explain if you're not from here. It's very difficult to get a house in the area we want. Other than that you're into quite scruffy areas or areas quite far away which mean a fair bit of travelling from work which then puts you in a bit of a bad mood when you get home as its so late, which is why we were avoiding those areas.

But anyway...

Just wondering what EXACTLY they're looking for on 3 months worth of statements. Is it 3 months of wages income (although they took 3 months of my Payslips?) or is it just 3 months activity?

Reason I ask is because I'm trying to find out whether I need a fresh account with 3 months of wages activity starting September, or whether I could use an existing account with July & August minimal activity & then put my wages into it for September (so there's no big payments to other people) & then submit this so that we're not delaying things.

One things for sure - as you said, the payments to other people stop today! Shame my word won't be enough & we'll have to wait to prove that - time that we don't have.

matttye

Could you not put everything into writing and attach copy bank statements (including your sister's, if she allow you to), explaining the route the money takes and the exact reasons why it goes through those accounts?

Not sure if that would make a difference, but I'd think if you had a decent explanation why they might be able to move on...

JustAnotherSaver

On my phone at the mo so no time to post at length:

Just to respond - I emailed our IFA the reason behind the transfers (chasing rates/offers & helping family members get theirs) & that the money always returns to me as it went out (same amount). Explained this doesn't break the T&Cs & that they could stop this by saying the credit needs to come from wages, but they don't.
IFA then told me that my email had been forwarded to the lender to explain the situation. I hadn't asked for it to be forwarded but at least they know the reason.

After this I sent them a copy of a statement from my sisters bank which she gave me (online statement) which shows money in & same money out on the same date back to me.

I'm still convinced everything will fall apart but I'm hoping it won't.

holly_hobby

The IFAs directly forwarded it, because the lenders wants your version of events, and as you've provided a full written explanation to your guy, there's nothing for him to add.

You'll just need to sit tight and see what transpires ... as I said way back, if they can track the monies being moved about being from legitimate traceable sources, and they are happy and comfortable to accept the reasons for the bed hopping, then you'll be ok.

Wait and see what next week brings now ... if you explain to your Vendors that the case is still being UW, they may be more akin to not panic on the delay to exchange ... the key here is not to go into complete melt down .....

There's support here for you, but at this moment we can't add more to what's already been said, not until the lender has given their decision.

Hope this helps

Holly x