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Lent Mortgage Deposit. Lender asking for audit
Loz001
Posts: 2 Newbie
Hi.
My mum offered to lend (will pay it back) me £50k. To save money over the life of the mortgage I accepted and have now put this money in my mortgage lender bank account.
Without giving it much thought I put on the mortgage application that the deposit was savings.
My mortgage lender has now asked to see an audit trail of the £50k (it was deposited in to my main current account account and then I transferred it over in 2 payments).
I have already saved up £35k on my own (spread over about 10 various savings and current accounts) which I was originally planning to use for the deposit. But some of the savings accounts have not matured and I would lose a small fortune in interest so I figured I may as well earn as much interest as possible on the £35k. I would also not be paying interest on this £50k lent from mum.
The mortgage payments are about £550 a month (about the same as my current rent) and I am saving at least double this each month so paying off the mortgage and my mum each month is not an issue.
Help / advise on how to proceed please.
Thanks.
My mum offered to lend (will pay it back) me £50k. To save money over the life of the mortgage I accepted and have now put this money in my mortgage lender bank account.
Without giving it much thought I put on the mortgage application that the deposit was savings.
My mortgage lender has now asked to see an audit trail of the £50k (it was deposited in to my main current account account and then I transferred it over in 2 payments).
I have already saved up £35k on my own (spread over about 10 various savings and current accounts) which I was originally planning to use for the deposit. But some of the savings accounts have not matured and I would lose a small fortune in interest so I figured I may as well earn as much interest as possible on the £35k. I would also not be paying interest on this £50k lent from mum.
The mortgage payments are about £550 a month (about the same as my current rent) and I am saving at least double this each month so paying off the mortgage and my mum each month is not an issue.
Help / advise on how to proceed please.
Thanks.
0
Comments
-
Hi.
Without giving it much thought I put on the mortgage application that the deposit was savings.
My mortgage lender has now asked to see an audit trail of the £50k (it was deposited in to my main current account account and then I transferred it over in 2 payments).
Looks like the lender has caught you out, essentially you would be committing mortgage fraud by declaring this as savings.
You'll need to provide them the audit trail & you'll probably need to get your mum to declare this as a gift and no interest in the property. But then, you'll still be committing mortgage fraud if you declared it as a gift but then continue to repay her after/if you get your mortgage.0 -
Don't really know what to say. You've declared a loan as savings and been caught.
Most lenders will reject the application, but some will be OK. Only thing you can do is send in what they've asked and explain the full pictureI am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
This discussion has been closed.
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