source of funds

lalab3

Hi All

I hope someone can give some sound information for us.
Mortgage offer we were expecting at £325k but is £240k
£85k less than what we need. Property price £580k

So, we thought this might be the case and in the meantime told 3 of our friends who we lent money to a few years ago that this may be needed.

Source of original funds £100k in bank savings £175k re mortgage but ofcourse due to our shortfall in mortgage we need our money back from a family member and 2 friends.
They can all transfer the money to us now over the next week or so. Will this be ok?

In short £100k savings bank statement
£175 re mortgage statement
£240k mortgage
£50k in 3 seperate transfers from 3 people 2 for my husband and one for me of the remainder and the rest to somehow buy furniture for the kids!
Im sure it will be ok to accept? No loans no gifts just getting our own money back from people after waiting!!! I was going to use this for renovations really but I guess it will have to wait. One sent a cq and the two others transferred.

Thrugelmir

lalab3 wrote: »

So, we thought this might be the case and in the meantime told 3 of our friends who we lent money to a few years ago that this may be needed.

You've lent people £50k? :think:

Can you evidence this with loan documentation.

lalab3

Actually its more lol
Ive lent £26k to my aunt and a friend
And my husband £45k plus both his best friends.
Over the course of 4 yrs. They are our family even our close friends are family to us. When we first bought our btl these people helped us financially too in 2004. Trust is key thats how we live. They can happily declare this if necessary. ...
everything else is fine too remortgage savings 100k in 21/2yrs

nubbins

Hi,

I recently had a similar situation for a BTL mortgage with Clydesdale. The majority of the deposit in this particular savings account had been built up by us but there were two largish deposits showing on the statement, one a pay back from a family member and another was a loan from another family member. Clydesdale wanted an explanation to which we sent a copy of the signed letters from the two family members. Once we sent those we never heard anymore about it and we have received the full offer.

Good Luck

Dave_Ham

You would be better off trying to find a lender that will lend you more than the current one.


Naturally lenders are wary of clients rocking up saying that they lent all this money (and not small figures here) and now want it back. If you have bank statements to justify this and can demonstrate the funds going out, it may be a tad easier.


This could easily end in tears, engage some formal help/advice.

Senior_Paper_Monitor

This is not uncommon (particularly within Asian communities) but can be a pain in the *rse with many lenders - others are more receptive.


As others have already said - an ability show the transaction history in both directions certainly helps.

ACG

It will depend on the lender and solicitor I think for this.
As Dave says you could try another lender and ensure there are no issues down the line or speak to the lender/your broker in relation to the repayment of the loans (on a side note, if they had the money why was it not paid back sooner). If I had lent someone £45k I would expect it back as soon as they were in a position to get it back to me.

kingstreet

Why was the offer £85k less?

Which lender? If this is Nationwide, they will not accept repayments of loans under any circumstances.

kingstreet

From Nationwide criteria;-

Unacceptable Sources of Deposit

Any loans taken out by your client, with the exception of borrowing from another lender against an additional property owned by the applicant (subject to affordability and criteria).
Funding from credit cards
Repayment of a loan from a third party

http://www.nationwide-intermediary.co.uk/lendingcriteria/general/general

amnblog

Why is there such a discrepancy between your expected and actual lending figures?

kingstreet

Reading previous threads suggests childcare costs which have not been correctly dealt with.