Proof of Deposit

hello?!!?

Hi all,

So this is a bit of a long winded story so I apologise in advance.

I am a first time buyer and I am really stuck as I know nothing about houses and mortgages and am putting my trust in advisors.

I placed an offer on a property at the end of 2015. There were many delays in the mortgage offer because of the lender asking for constant explanation of sources of funds. The mortgage company did not allow me to use some money given to me by my sister as their policy is that do not accepts gifts from people who are not home owners (despite my mortgage advisor telling me it was fine). They also did not accept a cash deposit when I sold some jewellery as I've lost the receipt.

Luckily because of my regular income I saved enough over the 3 months of delays to cover the money that I was not allowed to use. Unfortunately the vendor then decided to pull out. I did revieve a mortgage offer but had no property yo use it with.

I have now placed an offer on another property.The entire experience was awful and stressful and I want to avoid it.

Do I need to declare all of these sources of funds even though they have been in my account for 8 months? Will I now be able to use the money given by my sister as it has been in my account for so long?

Does anyone also know if I have to declare the money as gifts even though it's been in my savings account for over 8 months. My mortgage advisor had previously informed me that as the money was in my account, I did not need to declare it as a gift and that I declared it as savings. He told me lots of things which I trusted and causes more delays. I am now with a new advisor but again am so scared of things going wrong and need some advice.

Am I better off declaring my money as savings only and providing six months banks statements and pay slips to the solicitor?

Or should I go back 8 months and explain everything which is very long? I'm reading online and I'm confused!

I'm very confused. Please help

HappyMJ

You should spend your sisters money on living expenses and save every penny you earn which will effectively mean you've spent the gift and you've saved your own money.

You will need to provide proof of the money coming from your salary then immediately being transferred to a savings account whilst your spending comes from the account that has your sisters gift in it.

sam2015_2

You have a mortgage offer already so it might just be the case of changing the property address on it rather than going through the whole application process again. First check that with your broker.

davidmcn

hello?!!? wrote: »

Am I better off declaring my money as savings only and providing six months banks statements and pay slips to the solicitor?

You haven't told us what your solicitor has asked for. If they only want to go back six months then yes, this should be fine.

mildredalien

Ours have (so far) only asked for the last 3 months statements. This covers about 30% of our deposit and so far they haven't enquired where the other 70% came from! It is all savings over a few years and we had to declare I think to our solicitor whether any money came from inheritance, gifts etc.

It's safer to either declare the gift if you are using it for the deposit and find a lender who will accept it, or use the gift for savings / living expenses and your own money for the deposit. If your lender discovered an undeclared gift late into the process they could withdraw their offer.

Brightspark87

The whole of our deposit is a gift. We had to get the money given to my mum as our mortgage provider said my great aunt and uncle were third party gifts and therefore not accepted. So Solicitor just needed to see where money came from (mum has savings that are less than deposit) so did anti money laundering for all 3 of them.

seven-day-weekend

We gave our son the deposit for his flat. We just had to put the money in his account (so that it became his money and not ours) and sign a form saying it was a gift and that we had no claim on the property.

elverson

seven-day-weekend wrote: »

We gave our son the deposit for his flat. We just had to put the money in his account (so that it became his money and not ours) and sign a form saying it was a gift and that we had no claim on the property.

The same for us, with HSBC.

freedomby30

depending on the size of gift could you say she bought something off you?