Deposit from savings - any statements required?

stator

Hi All :wave:,

If you've saved up all your deposit yourself over 5 years, do the mortgage companies and their solicitors ever ask for proof, or do they just take you at your word?

For example to get good interest rates you have to move your money around a lot, so you might not have one bank account with money gradually accumulating in it, you might have lots of different accounts with rather chaotic transactions, eg £500 per month going into a "regular savers" account to get the best interest rate, even though that £500 isn't 'new' savings, it's coming from your current account but came from a cash ISA you close down because the interest rate was cut.
When it comes to internet accounts, if you close them down you often lose access to the statements (yes wouldn't it be great if you always remembered to download them every month), so it might not be easy to get statements.

So, will this be a problem, or are they just happy for you to tick a box saying the money comes from your "savings".

Lender will probably be Post Office / BOI if anyone knows specifically for them :A

amnblog

'We took his word for it' does not stack with the regulator.

Expect to provide statements showing funds building.

Contemptuous

The Post Office didn't ask for proof, but our solicitor did. They have to ask to comply with money laundering checks.

stator

amnblog wrote: »

'We took his word for it' does not stack with the regulator.

Expect to provide statements showing funds building.

Thanks :eek:

At what stage would you expect this to happen?
Before the mortgage offer or before signing the purchase contracts, or will the solicitors only ask for it at the last minute?

How far back do you think they need to go? For example I have one of the above mentioned 'regular savings accounts' that has about £500 per month paid into it from my current account. If the deposit was £5k would they want to see 10 months of statements? I'm not really saving £500 per month but I would hope that would be sufficient explanation

Rollinghills

I had to show 3 months of statements for all accounts from which deposit money was coming from.

Also we had to explain any transactions over 3k in those statements (by providing additional statements).

It would not make sense to close accounts now as you may still need to show those statements and it may be then difficult to get them as mentioned above (we had this problem with NS&I - once the ISA was closed they refused to issue any statements).

All lenders are different though.

stator

Rollinghills wrote: »

It would not make sense to close accounts now as you may still need to show those statements and it may be then difficult to get them as mentioned above (we had this problem with NS&I - once the ISA was closed they refused to issue any statements).

Yeah, unfortunately some accounts you can only get the money out by closing it

Rollinghills

stator wrote: »

Yeah, unfortunately some accounts you can only get the money out by closing it

My point is that you do not need to take the money out at this stage, you only need it to pay the deposit at exchange and the rest at completion.

Thrugelmir

Contemptuous wrote: »

The Post Office didn't ask for proof, but our solicitor did. They have to ask to comply with money laundering checks.

Solicitor acts on behalf of the lender with regards to money laundering regs etc (and will perform any checks that the lender requests).

Thrugelmir

stator wrote: »

Yeah, unfortunately some accounts you can only get the money out by closing it

How much is your deposit?

stator

5%

I'll try to keep my money in the same account until it's needed, but it's hard when Nationwide just cut their rates

Previously I made the mistake of putting too much of my money in the locked in account, I had to close it and withdraw the money to pay for all the costs for the failed purchase

glider3560

I am going to be in the same situation (deposit about £30k).

My deposit has partly been saved up by me, partly a gift (which I have already received as a bank transfer). Considering I have multiple current accounts (for the 5/4/3% interest offers), multiple regular savers and many previous savings accounts over the years, it could get very messy with showing all the documents.

Would it be advised to keep all the money in one account for the next three months, then I can just provide the one statement?