Proof of funds - stamp duty?

MrDavidUK

Hi There

My wife and I have just had an offer accepted on our first house (yay!)
We are now arranging a trip to the mortgage broker to finalise the details.

We did have one question regarding the upfront costs and proving that we have the ability to cover them.

At the moment we have the deposit saved and about another 3000 for the other fees. We are short about 2000 of the stamp duty.

However we are looking at completing in July and have proof of regular and sufficient funds going into our savings account every month and since the stamp duty is paid at the end, by the time we complete the deal we will have enough to cover this.

So the question is will this be sufficient for the lender or do they need to see we have 100% of the stamp duty already?

Be great to here from people who have gone through this already!

Thanks

Teaandtoast0124

I just had to show proof that i had the deposit. Did not have to prove fees or stamp duty.

lonestarfan

I only had to prove the deposit amount that was being added to the moratge amount of make up the purchase price.

lizards

Same. Broker asked if we had it informally, but that's different to proving the deposit which he needed formal evidence of. He said stamp duty is only payable at completion (and I have read it can be 30 days after completion although solicitors prefer it *at* completion - is this correct?)

We're in a similar situation (in our case we are being forced to move before we are totally ready due to landlord selling up) in that we easily have the deposit now, but we won't have the total funds including stamp duty until early May either, although there is absolutely no doubt we will get the money then. It does not seem to be an issue.

MrDavidUK

Thanks for all the responses guys! It was very helpful and reassuring. Just hoping the application goes through without any probs!

amnblog

A 'trip to the mortgage broker' makes it sound like fun!

Thrugelmir

lizards wrote: »

He said stamp duty is only payable at completion (and I have read it can be 30 days after completion although solicitors prefer it *at* completion - is this correct?)

If exchange and completion are close together, i.e. a week. Then the solicitor will wish to sight of the all the funds at the point of exchange. If there's a considerable time gap then prior to completion will suffice.