Proof of deposit to Halifax

huntercity

Perhaps I am a bit overworried...

Recently my hubby and I are buying our second property and have applied for a joint mortgage from Halifax. We have excellent credit scores (A rate) and long-term contracts . We have also 25% deposit in Halifax bank accounts and look for 75% LTV. The AIP has shown that we can absolutely borrow more than 75% ONLY based on our basic salary. The application has been submitted yesterday. However, we are now worried about the proof of the deposit.

Our deposit comes neither from any other relatives nor loans/debts, but purely from our savings in the Halifax bank accounts. But our savings are NOT ONLY from our basic salaries, but also other incomes. My hubby has run a small EBAY online store as a sole trader for one year and thus we have some extra earnings each month. Each month we transfer the earnings from ebay-related paypal account firstly to our Halifax bank accounts, and then to the saving account. We did not claim this part of income when we made the application, simply because the AIP has shown that our basic salaries has enable us to borrow enough money from Halifax.

Since part of our savings are from our incomes other than the basic salaries, we are now deeply worried if the underwritter would ask how we built up the SAVINGS for the deposit. Can anyone give me some suggestions, please... Thank you!!

Cheers
Sarah

anselld

Well the Halifax can see where the money is coming from. I doubt they will inquire but if they do then just tell them you make additional income running an eBay store. Perfectly legitimate.

Of course they won't be able to see if you are registered with HMRC as a sole trader and pay tax/NIC but thats not their concern!

amnblog

You are worrying about nothing Sarah.

oli_ro

Hi, don't want to scare you, but I think you should also considering the money laundry regulations which the solicitor has to comply to and will ask you to justify your deposit - you have declare and prove the provenance of your deposit money.

But, why not be honest and ask your broker and solicitor, I am sure you're not the first to have such earnings. Do you have to pay tax on such income, where does it fall into.

huntercity

Thank you so much for so many quick replies! Well, we are over worried because we indeed do not want to miss our dream house for our son.... My hubby is born sober but I am always a bit sensitive. He told me we can also provide the transaction history of our paypal account to Halifax so they could check how the money was paid into our paypal account from customers' paypal accounts through Ebay, and also how the money was transferred into our Halifax accounts.

It is so nice for me to hear good news from experts in this forum. I feel much easy now! Thank you all!

huntercity

oli_ro wrote: »

Hi, don't want to scare you, but I think you should also considering the money laundry regulations which the solicitor has to comply to and will ask you to justify your deposit - you have declare and prove the provenance of your deposit money.

But, why not be honest and ask your broker and solicitor, I am sure you're not the first to have such earnings. Do you have to pay tax on such income, where does it fall into.

Hi oli. Thank you for the suggestions! We do pay the tax/NIC on our earnings of Ebay. We did also tell it to the broker but she did not put this part of income in the application, because 1) our salaries have incidated enough affordability, 2) and unless the self-employed business has run for 3 years, the bank would not take this part of income for mortgage application. We have just run the ebay shop for one year...

I may have another question: Is tax evasion also one type of money laundary crime?

oli_ro

If you pay tax on it, you have nothing to worry about it.
I am not qualified to give exact definition of money laundry, all I am saying that 6 months ago I had to justify to my solicitors with payslip, bank statements, bonus letters *all* my deposit money.
Maybe not all solicitors are this pedantic, but either way as long as you can justify it you have nothing worry about.

huntercity

oli_ro wrote: »

If you pay tax on it, you have nothing to worry about it.
I am not qualified to give exact definition of money laundry, all I am saying that 6 months ago I had to justify to my solicitors with payslip, bank statements, bonus letters *all* my deposit money.
Maybe not all solicitors are this pedantic, but either way as long as you can justify it you have nothing worry about.

Oh, really sorry to hear that, Oli... I guess that we will have to go through the same procedure as well. May I know which bank you applied from and how long it took to get you mortgagge offer approved?

Regards
Sarah

huntercity

amnblog wrote: »

You are worrying about nothing Sarah.

Thank you very much, Amnblog. We managed to get our first mortgage from the mortgage advisor of Halifax for our first property. So this time we met the same advisor of Halifax again to apply for the new/second mortgage. But we will need to borrow more money from Halifax than that of the first time. So I start to worry many things as I was thinking this time we perhaps should have used an independent and experienced mortgage broker....

Sarah

oli_ro

Ah, I was using Nationwide and my circumstance were different, so my timeline is not of much relevance to you.

There is a long-running thread in this section where people post timelines of mortgage applications which might be helpful to you if you can find people who have applied recently using Halifax.

Good luck.

huntercity

huntercity wrote: »

Perhaps I am a bit overworried...

Recently my hubby and I are buying our second property and have applied for a joint mortgage from Halifax. We have excellent credit scores (A rate) and long-term contracts . We have also 25% deposit in Halifax bank accounts and look for 75% LTV. The AIP has shown that we can absolutely borrow more than 75% ONLY based on our basic salary. The application has been submitted yesterday. However, we are now worried about the proof of the deposit.

Our deposit comes neither from any other relatives nor loans/debts, but purely from our savings in the Halifax bank accounts. But our savings are NOT ONLY from our basic salaries, but also other incomes. My hubby has run a small EBAY online store as a sole trader for one year and thus we have some extra earnings each month. Each month we transfer the earnings from ebay-related paypal account firstly to our Halifax bank accounts, and then to the saving account. We did not claim this part of income when we made the application, simply because the AIP has shown that our basic salaries has enable us to borrow enough money from Halifax.

Since part of our savings are from our incomes other than the basic salaries, we are now deeply worried if the underwritter would ask how we built up the SAVINGS for the deposit. Can anyone give me some suggestions, please... Thank you!!

Cheers
Sarah

A quick update on the app: Still getting no news from MA of Halifax.

Perhaps one question about the Halifax credit scoring: We were told by the MA to pass the credit scoring with A. May I know if this is the top credit rating in Halifax?