Proof of source of funds for deposit

MrJB

LeonL wrote: »

Hi all!

Our solicitor has requested 6 months worth of statements for all accounts from which our deposit monies has come from.

Our deposit is £10,000.
£5,000 has been Gifted by one set of parents, £1,000 gifted by the other. £3900 is from cash that was originally withdrawn 7 months ago to purchase a car - which we decided against doing in the end.

We have £1600 in a help to buy ISA so will receive the government £400 bonus.

I'm wondering how I can go about proving the cash source?

I hope you've not got 1600 in a help to buy isa just yet. Seeing as the maximum you can have deposited to date is 1400. With another £200 coming in Feb. If you've got 1600 in there now it will be rejected.

dc197

You could put the 3900 back into a current or savings account, rather than keeping it in a burglar-friendly mattress-based deposit scheme.
Then it's all on paper at least.
If you give enough statements to show the withdrawal when you wanted to buy a car, you can then close the loop.

Woodsy

Hi,


I had money gifted from a parent as part of my deposit and the mortgage company gave me a list of conditions on using that money e.g. my parent won't have any part-ownership of the flat etc etc.
I simply drafted a letter from my mum listing all their conditions (as per the example above "I confirm I will not have part-ownership of my sons property") and got my mum to sign it.


I think it was part of their money-laundering prevention obligations.
Good luck.

orionmoo

Never had any of this when I bought a year ago. I think the solicitor asked us where the money was from, we just said savings and that was that.

In reality it was £25k from our savings and £20k from parents as a gift/loan.

In my eyes, they gifted us £20k and we have said we don't want to just accept £20k off them so we'll pay them back a little bit each month when we split off our savings.

29Found

We are just going through this now. My Mum is giving me money towards the deposit.


Despite only having to give 3 months bank statements for myself and my partner, my mum has had to give 6 months bank statements and have her ID verified. Not a stipulation from the bank but actually from the solicitors themselves. She had already signed the forms to say that it was a gift and that she had no interest in the house.

Ozzuk

GingerBob wrote: »

Good old MLP strikes yet again. Is there no end to this absolute boll*cks that we have to put up with in this country?

I know, it's crazy, it's almost like they are lending you a huge amount of money or something!

We blame banks for lending when they shouldn't, now we're attacking their more stringent lending criteria. The alternative is to save up and buy outright!

Kynthia

Ozzuk wrote: »

I know, it's crazy, it's almost like they are lending you a huge amount of money or something!

We blame banks for lending when they shouldn't, now we're attacking their more stringent lending criteria. The alternative is to save up and buy outright!

This is nothing to do with mortgage lenders criteria for lending, it's the solicitors complying with money laundering regulations.

Keep_pedalling

Kynthia wrote: »

This is nothing to do with mortgage lenders criteria for lending, it's the solicitors complying with money laundering regulations.

There is also the issue from the lenders point of view that any parental gift towards the deposit is indeed a gift not a loan.

I'm not sure why anyone should be outraged about this, how else can you check that dodgy money is not being siphoned into property, or that someone has not borrowed heavily to raise a deposit?

andre_xs

We just got a mortgage offer, and we also had quite a bit of gifted money for the deposit. In our case, this came even from abroad (EU).

We had to provide bank statements for 6 months from which it became apparent that there were these rather large money transfers. The independent mortgage broker asked us from where the money came, and we just explained in an email to the broker that it's gifted from family (and partly our savings which were still in our previous country's accounts).

That was all, never had any other requests, forms to sign, confirmations of the people giving, or alike. As the mortgage offer now has been made, I guess nothing will follow any more...

jayII

andre_xs wrote: »

We just got a mortgage offer, and we also had quite a bit of gifted money for the deposit. In our case, this came even from abroad (EU).

We had to provide bank statements for 6 months from which it became apparent that there were these rather large money transfers. The independent mortgage broker asked us from where the money came, and we just explained in an email to the broker that it's gifted from family (and partly our savings which were still in our previous country's accounts).

That was all, never had any other requests, forms to sign, confirmations of the people giving, or alike. As the mortgage offer now has been made, I guess nothing will follow any more...

We had a similar request regarding the mortgage offer.

The other requirements came from the solicitor, to comply with UK money laundering checks and to fulfill the legal part of the mortgage lender's requirements.