Mortage - Proof of deposit

Herric

Good evening all,

Just a quick question.

I have been accepted (4 months ago) on a mortgage with Halifax and I have my deposit in my savings account - until 3 months ago this was literally in a suitcase under my bed.. The deposit is £15,125.00.

This Thursday I am going to my solicitors to sign all the paperwork, and they have asked for my proof of deposit, but having spoken with my mortgage advisor who arranged the lender and the solicitors to use he has said there 'may' be a problem with my proof of deposit..

I understand the whole money laundering thing, but surely I am not the only person who has kept money in a safe place in my home.. that being said, I took £13,000 of the deposit and paid it in cash into my bank account. My bank had no problem with this at all.. and it has been in their for nigh on 3 months. I then deposited a further £2,000 and since then £125 and another £500.

My question or query is... my solicitor wants to make sure they are satisfied with where my money has come from and literally all I can say is it was collected over a loooooong period of time and put up for safe keeping until I needed it... now surely if my bank (who I've been with for 7 years - I'm 27 - was happy to accept the money, over the counter, then that should pass any money laundering questions with my solicitor?

It could be nothing and I'm worrying for the sake of nerves of buying my first home, but I work in insurance and I know what 'protocol' is like.

Would it be worth me running a bank statement over the past 6 years - which is all that is available apparently - and highlighting with a marker all the cash withdrawals to take with me? Because this money has come from things such as; money left over from a night out or left over in general, £20 bets on horses that have come in, Christmas cards and Birthday cards with money in and cash I have purposefully taken out to put into savings.

ANY Advice would be great!

Thanks guys,

Herric

Thrugelmir

Herric wrote: »

Would it be worth me running a bank statement over the past 6 years - which is all that is available apparently - and highlighting with a marker all the cash withdrawals to take with me?

Why would anybody remove cash from their bank to stick it in a suitcase under their bed.

There's a point at which a transaction becomes too much bother to waste time with. Something which is worth keeping in mind. In business uncertainty isn't liked.

maas

If I was in your shoes, I'd just take 3 months savings account statements in which show the full deposit, and take it from there.

I wouldnt show the page with a £13000 cash deposit unless asked for it (I'm actually surprised the bank accepted that over the counter in 1 go (or a bunch of large cash deposits in short space)).

If they ask for further statements to show how the amount was saved, then you'll have to cross that bridge then but 3 months maybe enough.

Armorica

Taking cash out to hide under your bed is a story that banks won't think adds up.

Storing cash under the bed is very out of character for a 27 year old.

I would imagine they may have serious concerns about the funds being proceeds of crime.

Kimlock

A work colleague was in a similar situation to you. She and her husband saved for their mortgage deposit by putting any spare money/ withdrawals from a cash machine in a tea chest in the spare room. We thought she was barmy and advised against it but she was adamant that it was more of a motivator for them to see the money physically building up rather than numbers on a bank statement.

When it came to the mortgage application, the bank wanted to see the gradual build up of deposit in their bank account. All they had was the bank statement showing the deposit of £15,500 into their account in two separate transactions.

They were told that due to money laundering regulations, they had to prove that the money had been in their account for some time, building up.

It completely derailed their mortgage application and they had to wait another year to apply.

paulharding150

Post the solicitors your three months worth of statements.


Wait and if that doesn't work, come back.

ajide

Any update on this?

byebyedebt

The proof of deposit is needed to prove you have the funds and that they are available. They only need the most recent statement. That is all.


They want to see that you basically have the cash, and that you are not going to get caught short, ie because you are planning to cash in investments that could fall in price (such as shares), or that you are using a loan / credit cards etc to buy. Basically you are demonstrating that you are able to proceed because you have the money in an account.

amnblog

If the funds show over three months on the bank statement I would have thought that would be sufficient.

We have a case in at the moment where the client had 50k in the safe at home which is primarily wedding gifts. It only went in the bank earlier this month ready for transfer to the solicitor. We have been totally upfront with the lender about this and await their response.