Proof of deposit

MNM2903

So me and my girlfriend have been saving a deposit for our first home. Its all going in her name and we have the DIP but we have a meeting witht he advisor on Thursday to go over and make the official mortgage application.

We have both contributed to the deposit of £5550 but they have mentioned that because ill not be on the mortgage application we need to work around where the deposit comes from?

As i have contriubuted half and wont be officially on the mortgage should this be a problem? i know some will say its a risk and i have nothing to gain from this but basically im happy to contribute it and ill be going on the mortgage in the next 3-4 years once my credit history improves.

Anyone else had this problem?

betmunch

Are the savings held in a joint account, or just in your girlfriends name?


There are lenders that will reject a case because of this. Its up to your broker to avoid pitfalls like this.


Is your meeting with the bank, or with a mortgage broker?

MNM2903

Mortgage broker. Hes coming on Thursday. Im quite happy to gift the money or whatever with no plans atall to ever request it back.

Its held in her savings account which has been paid in to by me doing a bank transfer to her bank then shes withdrew the money from her bank to put in to her building society savings account.

betmunch

Its paid into her bank and you have a professional sorting it out for you.


I cant see you having a problem here.


Make sure they know the full situation with the deposit money.


I can think of 2 lenders just off the top of my head that will not take issue with the deposit like this.


Good luck

MNM2903

Okay brilliant. Ill make sure the broker knows the full situation and id imagine its in his interest to sort this so there are no hitches.

Thrugelmir

MNM2903 wrote: »

Its held in her savings account which has been paid in to by me doing a bank transfer to her bank then shes withdrew the money from her bank to put in to her building society savings account.

Simply moving funds around may not be sufficient. Recent transfers are bound to be questioned. As it's the most obvious way of trying to conceal the truth.

MNM2903

Where not trying to conceal anything though. Im simply contributing to the deposit without wanting anything back from it?

ExpertAdvice

Hi,

Most of the lenders are not happy with the deposit coming from partner or a spouse if they are not on the mortgage and will be residing in the property.

From lender's point of view, since you have contributed towards the deposit, you can claim rights in the property in the event of a repossession if its ever required.

However, they are happy with gift deposit coming from close family such as parents or siblings etc.

AndyAtu

You don't want anything back but you'll be living at the property. Some lenders I understand will see this as a problem.


I'm no expert, your MA will know best, I'm only an FTB with way too many questions and who's received confusing answers.

libf

Ask if signed a gifted deposit declaration will be enough to cover it?

MNM2903

we could have it gifted from a family member then i could just pay them i suppose. Im sure there will be a way around this.