Lent Mortgage Deposit. Lender asking for audit

Loz001 · 14 March 2016 at 4:46PM

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.

betmunch · 14 March 2016 at 5:10PM

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 picture