Proof Of Deposit

TakeItAsRed

I have a quick question, hoping someone can help me out.

When would a mortgage applicant have to provide proof of deposit, and when would it be payable. Would it be payable at the point of exchange of contract?

Just thinking out in advance.

Would an applicant be able to take into account a small overdraft borrowing when providing such proof?

Cheers in advance

kingstreet

At the point of applying for the mortgage you would normally be asked for it by a broker or lender.

You will also be asked for it by the solicitor acting for you and the lender a couple of weeks in. You will be handing over the money in preparation for exchange of contracts.

You won't be able to "borrow" it without permission of the lender. If you don't get this, the solicitor will have to report it to the lender as soon as you tell them your plan.

TakeItAsRed

Thanks,

The lender didn't asked for it as of yet.

I did tell them the deposit will be saved in the account over the next few months, to which they didnt say was a bad thing. This will come from my salary.

I was actually thinking of just transferring the money into my E Saving account, and keep it separate from my monthly outgoing on a monthly basis, not all at once.

Madbags

With Nationwide we had to provide proof of deposit (where not from equity) at the Decision in Principle stage. It was never asked for again after that, by anyone.


Since we completed and exchanged on the same day naturally we didn't need to pay any deposit to the solicitor before completion.

amnblog

The Lender may ask for proof of deposit before mortgage offer.


If you cannot prove the deposit it will delay the offer.

The deposit funds will not have to be with the solicitor until you have exchanged, but you wont exchange without the mortgage offer and you wont have the offer if the lender is waiting for proof of deposit.


An overdraft is a debt, not cash available for deposit.