Proof of deposit

smnberryman

I've been saving (and matched betting) for a few years. Now I have £60k for a house deposit. I'm a FTB.

The money is spread across lots of currents accounts - Santander 123, Club Lloyds, TSB, BoS etc, you get the idea...

Now I have read that lenders want to see evidence of the deposit. Ok no problem, just get the statement(s) from each bank.

However I have been told that lenders may (or will) want to see 'where' this money has come from.

Is this correct?

If so, what 'proof' is generally required? (I realise different lenders may have different ideas of what constitutes proof, so just in a general sense so I can get things rolling if need be)

Thanks.

GMS

Lenders need to satisfy money laundering regulations and be seen to have investigated as necessary.

If you have legitimate money there will be no issue. Provide what they need whether that be evidence of winning bets going into account or an explanation of where large deposits came from.

As frustrating as it may be to dig out paperwork if it is what needs to be done to get the loan then so be it.

Unlikely to question where every last penny came from but be prepared to answer questions. £100 from emptying my coin jar will be acceptable but £14,000 from the piggy bank will not!!

Be 100% honest and provide audit trails as necessary and you will be fine

smnberryman

Thanks for the reply.

Yes it is all legit I might add!

However it has been built up over 6/7 years, many accounts opened/closed (I won't even be able to remember some of the accounts I've had), so how would I go about proving it is 'legit'?

What paperwork is required? (I would probably have to request information from each provider as I am going to assume I won't be able to find paper copies)

I realise it may not be required, however I would rather be in a position that I am not starting from square one, just in case...

Thanks

amnblog

We recently had a client whose 'proof of deposit' were bank savings accounts where a five figures sum appeared and their was no evidence of regular saving.

On further investigation it was clear that personal loans on the credit file were in fact the 'deposit'.

This is the kind of profile lenders are suspicious about.

Thrugelmir

Provide statements that evidence the source of the funds. Simple enough to do.

smnberryman

amnblog wrote: »

This is the kind of profile lenders are suspicious about.

Lenders are suspicious about people with 'high' deposits?

Thrugelmir wrote: »

Provide statements that evidence the source of the funds. Simple enough to do.

Yes simple enough, say I had once £40k in a Santander ISA. Now say I opened a bunch of current accounts and stick £5k in each and close the ISA.

Surely showing the current account statements won't wash because the money just appeared from nowhere! So I presume the ISA would need proving, then what about the deposits to the ISA, ad infinitum arrrgggghhhh!

Btw, I would like to say again this is all legit!

Maybe I was naive to assume people were free to save up money without having to prove they aren't a criminal or commiting fraud... :whistle:

amnblog

smnberryman wrote: »

Maybe I was naive to assume people were free to save up money without having to prove they aren't a criminal or commiting fraud... :whistle:

This is about extensive internal efforts to reduce crime and terrorism by monitoring the flow of 'dirty' cash.

Putting dirty cash into a property transaction is a classic way to 'launder' it as it becomes' legitimate funds' once the property is sold.

Your solicitor, broker, bank, and lender, can all be prosecuted for not making the required checks or reporting anything suspicious.

That is the sledgehammer and you are the nut.

whakatane

What level of proof is required for a gift from a relative? I will be getting two lump sums, one from my parents and one from a grandparent, to go towards my deposit. Would they need to prove where the money is from, or do I simply need to prove that it was a gift?

kingstreet

whakatane wrote: »

What level of proof is required for a gift from a relative? I will be getting two lump sums, one from my parents and one from a grandparent, to go towards my deposit. Would they need to prove where the money is from, or do I simply need to prove that it was a gift?

A gifted deposit letter from them, together with identification and a copy of the statement from the account the money left on its way to you.

This is the most onerous requirement I can think of lately.

mrluke

We had a relatively small deposit , didn't get asked for no proof at all . didn't even check to see if we had even saved one ! .

I had a small gift in there which was just a signed letter from my parents .

brenda10

whakatane wrote: »

What level of proof is required for a gift from a relative? I will be getting two lump sums, one from my parents and one from a grandparent, to go towards my deposit. Would they need to prove where the money is from, or do I simply need to prove that it was a gift?

My daughter just been accepted for a mortgage application with Abbey/Santander. I offered to help her on to the ladder with 25% deposit for £190 k house......only pennies left now.
I wasn't asked to provide any bank statements because I relinquished any attachment to the house completely on a template letter from the mortgage company. This is the letter below.




For the attention of Abbey



We, XXXXXXXXXXX & XXXXXXXXXXXXX can confirm that we are gifting


XXXXXXXXXXX xxxxxxxxx the figure of £XX,000 pounds towards her deposit for the purchase of
ADDRESS OF NEW PROPERTY.



This gift is non-repayable and we will have no interest in the property, either on completion
or in the future.We will not be living in the property.



We will not be imposing a second charge.





We are XXXXXXXXXX xxxxxxxxx parents.





Yours faithfully,




As you can see you have to say you have no part in the property and never will. We were not asked to provide identification either, probably did credit checks on us at our address to see that we did exist, that is it, easy peasy......money all gone now though, but at least we have a room to stay in now when we visit