Ftb advice

NIBZ123

Afternoon,
First time poster. Me and my partner are seeing a broker saturday to apply for an AIP. Currently our deposit is in the bank of my mother in law as this was our way of saving it. Will this be an issue? Obviously all being okay we can transfer the money into one of our accounts asap.
Thanks

Foxy-Stoat_3

As long as you can prove that you paid the money into your Mother In Law's account for the last X years you may still have to get her to confirm that the money is a gift.

Speak to the broker and see what they say.

NIBZ123

We have been drawing it out and giving it her for he last five/six years and she has been paying into her bank. Maybe a silly question, why would this be an issue?
Thanks

Foxy-Stoat_3

NIBZ123 wrote: »

We have been drawing it out and giving it her for he last five/six years and she has been paying into her bank. Maybe a silly question, why would this be an issue?
Thanks

The lender may see the money coming from your MIL's account with no prove that you have been "saving".

NIBZ123

So if this was to be an issue, would it be a major problem? Or should we just disclose it as a gift?
Thanks again

heytoki

NIBZ123 wrote: »

We have been drawing it out and giving it her for he last five/six years and she has been paying into her bank. Maybe a silly question, why would this be an issue?
Thanks

AML checks

Foxy-Stoat_3

NIBZ123 wrote: »

So if this was to be an issue, would it be a major problem? Or should we just disclose it as a gift?
Thanks again

Why dont you speak to your broker and see what they say.

NIBZ123

Of course we will but wanted some advice and to be prepared before we go in there Saturday. Could they still do an AIP for us regardless of this issue? Or should we wait and transfer our money to one of our accounts now?
Sorry if this sounds repetitive but don't want to look silly come the weekend.
Many Thanks
N

Foxy-Stoat_3

You won't look silly, you are first time buyers so your broker will run through everything.

It doesn't matter if you transfer the cash now or in a month's time, the fact that a lump of money will be hitting your account from another source will raise the relevant questions.

Just say that you have been drawing out cash every month and handing it to your MIL to save for a deposit, tell them how long you have been doing this and how much you have saved and any interest that your MIL has made on the money. You may be asked for bank statements to prove the amounts but as its cash it may not matter. Your MIL may have to write a statement stating the amounts you have paid her, when and what interest she has made for you or just saying its a gift.

Your broker will advise you .

heytoki

NIBZ123 wrote: »

Of course we will but wanted some advice and to be prepared before we go in there Saturday. Could they still do an AIP for us regardless of this issue? Or should we wait and transfer our money to one of our accounts now?
Sorry if this sounds repetitive but don't want to look silly come the weekend.
Many Thanks
N

You still can do the AIP. The AIP will tell you how much you can borrow considering your circumstances.

If you transfer the money now and you buy within the next 6 months, you might be asked for statements that will be showing that transfer and therefore you will need to prove where that money comes from anyway.

if you dont find a place in the next 6 months, you will be fine later on as you will not have to prove where that money comes from because they are savings.

Dont be afraid to look silly with your broker. It is his job to help you and answer your questions.

Foxy-Stoat_3

heytoki wrote: »

if you dont find a place in the next 6 months, you will be fine later on as you will not have to prove where that money comes from because they are savings.

You sure about that?