deposit proof help!

Bee70

We are just starting the process of buying our first home. We have received a pack from the solicitors requesting lots of proofs and signing of documents.
One of the things they have asked for is proof of deposit over the last 6 months! They have also said that the accounts in which the deposit has been in over the last 6 months has to be the account the money comes from when we pay the deposit. The problem is that the money is coming from the sale of my parent's house, and has put in various accounts, including the pension pot to boost this up whilst we were looking for a property to buy. It is going to take a few weeks to get the money out, and will be paid into their bank account, so will not be the same account as when we prove the deposit funds. I had no idea they would want the deposit in this level of detail. Will it be ok?

csgohan4

Are you using the EA solicitors and brokers?

Ususually deposit proof is to comply with money laudnering regulations. To ensure the money doesn't come from dodgey places.

Bee70

no they are not linked with the EA at all

libf

Explain the situation to the solicitor and see what they say. If they are inflexible then find another solicitor who will work with your situation.

Anagran

Try not to worry, I think it will be okay. When our offer was accepted we had our deposit money all over the place in numerous accounts and did not have the full amount needed yet as we were selling some items to generate funds. Once we got all the money in and moved into one account over the next week or so, the mortgage lender only asked to see a statement showing that we had the total value in the account. They only asked to see a statement from 1 of the many source accounts showing the money coming out of there, and did not even query a large cash deposit into the account. Our solicitor asked for 3 years of eveidence of our saving of the deposit. This covered dozens of accounts many of which had been closed. I was very worried about this, but actually in the end all they really wanted was some basic evidence that over the past few years we have been saving and were happy with the limited info we did manage to gather together.

Obvioulsy different lenders and solicitors have different ways of working, but I am sure you will be able to get it sorted out.

davidmcn

Explain this to them and ask them what they need - only they can answer this. I would want to see the paper trail showing the money being transferred via the various accounts.

If money has been gifted to you by parents, have you already declared that as part of your mortgage application?

bufly77

Bank Statements showing the transfer of money into your account and a signed declaration about my fund source was asked by my solicitors. I asked why, they answered due to money laundering. I had 120K to put for the property deposits. Solicitor took over a week giving clear to my funds and then requested the funds transfer across. All provess was slow but it moved eventually. You can call them directly and ask exactly what they are looking for. Large cash deposits in your account with no proof of income, where tax is not paid or it is illegal money perhaps is what they want to block and not laundered.

Bee70

thanks for the replies - I have always been open about the source of the deposit, and have proof of the deposit as it is and a letter from my parents stating that it is a gift from house sale. We just weren't expecting to have to provide 6 months of statements for this. Bless her, my mum is desperately trying to get all the statements together