Back to house hunting. Deposit question

heytoki

Hello all,

i put this post in the mortgage section but i didnt get any reply so i think maybe it was the incorrect place. So i hope someone might reply now

After finishing 2014 in a dissapointed way as i was outbid in two properties i put an offer.

i have spent January to digest that and now mid february i am back on house hunting.

My situation has changed slightly. In Christmas, my father sold a piece of land and he gave me £2,300 cash from that sale.

I am spanish, from a small town and people still do transactions in cash.

Can i use this money along the deposit? or would it be a problem later on when it comes to justify it?

Thanks

stator

If you intend to use it as your deposit you may have to get a declaration from your father that it is a gift and not a loan, but you might just use all your existing savings as the deposit and use the new gift to pay your fees, and then you wouldn't have to justify anything.

OuiMaisNon

I think this all depends on what bank/solicitors you choose to go with. I had major issues with one banks name I will not mention, for over 4/6 months about my deposit and my earnings and trying to justify everything to them, really it's not their place to query where your deposit has come from or how fast you have acquired it, that's what the solicitors are for.

If you're worried about how it looks you can (if they allow it, some banks don't) get your father to sign the money over as a 'gift' instead of putting it straight into your bank though I think it's all circumstance. I eventually took a mortgage out with my bank and they took a 2 minute look over my account and that was it compared to the 6 monthly long issues I had with the other lender.

At the time my mortgage was going through I had a loan come through which I wasn't using on my deposit and it wasn't questioned in the slightest by either my solicitor or the bank which surprised me as you're obviously not allowed to pay credit with credit, if that makes sense.

heytoki

stator wrote: »

but you might just use all your existing savings as the deposit and use the new gift to pay your fees, and then you wouldn't have to justify anything.

i thought about this option. But what are the fees i can pay? As far as i know the stamp duty has to be done by wire transfer and i dont think you can pay the solicitor fees in cash?

davidmcn

heytoki wrote: »

i thought about this option. But what are the fees i can pay? As far as i know the stamp duty has to be done by wire transfer and i dont think you can pay the solicitor fees in cash?

Not directly, but you can pay it into your bank account and then transfer it. The only questions ought to be about where you got the money for the price, the source of your funds for fees and stamp duty is irrelevant.

stator

If your deposit is £5k and you have a savings account with £5k in it and you can show them the statement that shows money being paid into that account over 6 months then you should be fine.
If you have other amounts of money coming into and out of your current account it shouldn't make any difference.