Proof Of Deposit - Help

padmathakar

Hello Experts,

I need some clearification about home deposit. We put an offer on home with New Help to Buy Scheme. The amount we have agreed with developer is £170,000 - Our 20% equity has gone through - so no problems there.

Please note that I am married with no kids and I am applying for Mortgage on my own (so not including my Wife). Our Mortgage Broker has prepared for our application and requested additional information from me (also solicitor has requested same information through their standard form which I am about to explain)

The information required from broker and solicitor needs Proof Of Deposit. I have £3500 in my accounts as savings.

My wife is going to transfer about £2500 from her account - Is this allowed? Or will this be considered as gift aid and she will need to give letter stating she doesnot need money from me, etc - Also will the broker / lender / solicitor need statements from wife to check where this money came from?

Also I had given a friend of mine about £2500 when he needed it last year - we had agreed that he will return the money when needed by me - it was bank transfer and can see seen as an entry on my bank statement. Now he is ready to send me the money when I need it - But am not sure if I take this money it will cause any problems? Any advise or suggestions?

Also when they request Proof of Deposit, does this include stamp duty costs, solicitor costs, etc? Or it is purely 5% deposit I need for home?

I would be very greatful if someone can clarify and help me here.

Many Thanks.

kingstreet

A "gift" from a relative who will live in the property but who is not party to the mortgage and the ownership will be a problem for many lenders.

Speak to your broker about this immediately.

padmathakar

Many Thanks for your reply kingstreet.

Any thought on the friends money that I can receive?

kingstreet

It's pointless to speculate.

The lender and the solicitor will both have different positions on this, with the solicitor having additional money laundering responsibilities, so discuss with broker and establish exactly what you will need to satisfy both.