Proof of source of funds for deposit

bris

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?

What? Are you saying you don't actually know the biggest source of money laundering is in all the properties the crooks all over the word own?

alchemist.1

LeonL wrote: »

Just to clarify:

To the first reply: I said we planned to buy a car. At no point did I say I sold one. The cash was then stored with our passports in a safe we have at home. It was all put back into the bank in December. The issue being the solicitors want proof that the cash we put in is the same cash we took out. Not sure how that's done without a list of serial numbers from the notes.

The issue here is with the solicitor. The lender has already confirmed its happy with all deposit sources

The HTB ISA is currently £1400, will be £1600 on Feb 01.

Have you provided them with the statement showing the money being withdrawn?

Not surprisingly Solicitors don't want to do jail time over a few hundred profit.

Buying/Selling cars is one of the most commons reasons used by launderers banking cash/using cash.

mortgagewannabe_2

Hi everyone,

Whilst we are on the subject of source of deposit. My dad whom is pension age wants to gift me £5000. However, he has has £2000 in his accounts and the remaining £3000 on his credit-cards.

I have told him that it's very kind of him, but he doesn't need to, however he has insisted as he feels it's his duty to help his kids.

So my question is....Is he allowed to borrow from his credit-cards and gift this to me or not?

LeonL

cjdavies wrote: »

Could you show the bank statement with it being withdrawn.

Yep they have the statements showing it being withdrawn and the statements showing the same amount being deposited again. They're asking for proof that the cash we deposited is the same cash we withdrew. Seems a bit far fetched to expect someone to be able to prove.

We've decided to leave it a month as by that point we will have covered the same amount with deposits by our employers. We currently have our deposit amount + 3000 from January wages. So waiting another 27 days seems like the easiest way.

LeonL

mortgagewannabe wrote: »

Hi everyone,

Whilst we are on the subject of source of deposit. My dad whom is pension age wants to gift me £5000. However, he has has £2000 in his accounts and the remaining £3000 on his credit-cards.

I have told him that it's very kind of him, but he doesn't need to, however he has insisted as he feels it's his duty to help his kids.

So my question is....Is he allowed to borrow from his credit-cards and gift this to me or not?

I should imagine you'd be ok with that one, as long as he signs a form to waive any claim on the property and to confirm he's not expecting you to pay it back. I'm not sure if the solicitors would have any responsibility as an organisation to ensure he's able to afford the credit card debt repayments without causing himself financial detriment. The mortgage company as a financial institution will likely have more of a responsibility in that area.

Though don't take my word for it, I'm not up to scratch with how mortgage lenders work. I lead a team in the financial sector who deal with customer credit and repayment. I know that my team would not be able to accept payment by credit card, to protect the customer from financial difficulty (if they can't afford to pay our card, why let them create another debt to pay part of ours, and end up with 2 debts). We do allow full balance transfers though.

If you're using a broker, they'll be able to contact the lenders to confirm this for you. You could possibly also contact a few solicitors to ask, and instruct one that is happy to proceed with it.

At the end of the day, the lenders appear to be interested in affordability while the solicitors are interested in whether or not it's all above board.

mortgagewannabe_2

LeonL wrote: »

I should imagine you'd be ok with that one, as long as he signs a form to waive any claim on the property and to confirm he's not expecting you to pay it back. I'm not sure if the solicitors would have any responsibility as an organisation to ensure he's able to afford the credit card debt repayments without causing himself financial detriment. The mortgage company as a financial institution will likely have more of a responsibility in that area.

Though don't take my word for it, I'm not up to scratch with how mortgage lenders work. I lead a team in the financial sector who deal with customer credit and repayment. I know that my team would not be able to accept payment by credit card, to protect the customer from financial difficulty (if they can't afford to pay our card, why let them create another debt to pay part of ours, and end up with 2 debts). We do allow full balance transfers though.

If you're using a broker, they'll be able to contact the lenders to confirm this for you. You could possibly also contact a few solicitors to ask, and instruct one that is happy to proceed with it.

At the end of the day, the lenders appear to be interested in affordability while the solicitors are interested in whether or not it's all above board.

Thanks very much for your reply LeonL. I'm dealing with halifax bank directly and they can't give me a clear answer and thats why I posted on this forum.

I'm a bit confused with this source of deposit thing....who is responsible for checking your source of deposit? Is it the bank or the solicitor?

alchemist.1

mortgagewannabe wrote: »

Thanks very much for your reply LeonL. I'm dealing with halifax bank directly and they can't give me a clear answer and thats why I posted on this forum.

I'm a bit confused with this source of deposit thing....who is responsible for checking your source of deposit? Is it the bank or the solicitor?

The bank - to ensure that another wont form an interest in the property.
The solicitor - to ensure that you're not laundering money. They will also have a duty to the lender to report on any disreprencies

mortgagewannabe_2

Right thank you alchemist for clarifying that information.

Since LeonL couldn't say for 100% if bank/solictor would be okay if dad gave me a gift via his credit card, can anyone definitely confirm whether this is acceptable or not?

davidmcn

mortgagewannabe wrote: »

Right thank you alchemist for clarifying that information.

Since LeonL couldn't say for 100% if bank/solictor would be okay if dad gave me a gift via his credit card, can anyone definitely confirm whether this is acceptable or not?

If the bank is ok with some of your deposit being gifted (and there isn't a standard answer to that part of the question - you'd need to ask), then the fact your dad is getting it from his credit card shouldn't be a problem.

mortgagewannabe_2

Thanks david,

Our bank is halifax and I have found the following info on their website:-

Family Gift - Gifts from family are acceptable however; we require a letter prior to the completion from the family member giving the gift, addressed to Halifax and dated within the last three months, detailing the following:

• Details the person/people gifting the deposit and the current name and address of the applicant(s), together with the property being purchased.
• Confirms the relationship between the donor(s) and the applicant(s). The donor should be a family member.
• Details the donor’s full address and is signed.
• Confirms the amount of the deposit, that it is not repayable and that the donor will hold no interest in the property following completion of the mortgage.
• The source of the deposit.

The latest bank statement or passbook from the donor showing evidence of the deposit funds in the donor account may also be required. Alternatively a letter from the donor's bank confirming the funds are available may be provided. Additional statements may be requested where required.

A family member is someone who is related to at least one of the applicants:

• By birth/blood relative (for example an Aunt has to be via blood and not marriage).
• By marriage or civil partnership (including step children, adopted children and in-laws).
• Common law partners / co-habiting in current property.

However there is no mention about whether familty members themselves can borrow on credit-cards etc to pay as a gift to their relatives and if you could point me to any such information online then I'd be ever so grateful.