Proving Deposit

LiLibell92

Hey everyone! I'm new here - please be gentle!

So I''m a FTB with a 5% deposit, we've got a DIP (eventually) found a house, had offer accepted, just waiting to complete full mortgage application on Tuesday.

I have some concerns though. Shortly after putting in an offer on the house and having it accepted, I thought it would be a good idea to put the cash I had saved (from birthdays, christmas, easter etc) into my savings account, as this value made up my mortgage deposit to the 5% with a little extra for the costs etc. I put £1300 into the 'save to buy' account (I'm with nationwide) and the other £700 into my current account, to be used for brokers fee etc.

I'm now having a minor panic as to how I'm going to prove the source of these funds (in retrospect, I should have just gotten off my lazy bottom and paid them into the bank as I recieved them, but I have a safe at home and didn't see any reason not to use it at the time); my mortgage broker has my savings pass book and hasn't batted an eyelid at the recent large deposit, the only thing thats rung alarm bells is the detail the solicitor is requesting. I have sent them an email to make them aware of where some of the deposit has come from, but they're out of office, so I suppose I'm looking for some peace of mind!

I also don't yet have the full amount needed for solicitors fees upon completion sat in my account, I am budgeting for them as the come up and have calculated that with my next pay (3rd June), my bonus from work that's coming in June and the 'cashback' the mortgage we've applied for comes with, I'll have more than enough to cover the fees on completion....will this pose an issue? Do I need to prove that I already have this?

Any help and advice is welcomed!

Mortgage_Moog

I've just been through the mortgage application and at no point did they ask to see any proof of a deposit. I did ask them several times if they wanted any proof and they just waved it off and said that so long as I had it at the time I had to pay the deposit it was fine and no proof was needed.

I did need to show an estate agent a bank statement to show I had enough for the deposit but that was just their policy and might not apply to every agent.

It's important to note though that if you don't have the deposit when it's due you do get hit with a penalty. I don't know the penalty is but I should imagine it could be quite large or have serious consequences.

Newbiebuyer2016

I wouldnt add in the cash back as this comes a certain time after completion.

I also wouldn't be drawing attention to anything unless asked.

We had some cash payments from a few bits we had sold on gumtree but no one asked.

davidmcn

Mortgage_Moog wrote: »

I've just been through the mortgage application and at no point did they ask to see any proof of a deposit. I did ask them several times if they wanted any proof and they just waved it off and said that so long as I had it at the time I had to pay the deposit it was fine and no proof was needed.

I did need to show an estate agent a bank statement to show I had enough for the deposit but that was just their policy and might not apply to every agent.

But (I presume) you've still to prove to your solicitor where your funds came from, so they can comply with anti-money-laundering regulations? Which is an understandable concern for the OP without any evidence of where the cash came from.

Not much that can be done other than wait to see what the attitude of the solicitor is, there aren't any hard and fast rules about what checks they ought to make, and some are more laid-back than others.

LiLibell92

It was the solicitors questionnaire that made me think about it, I guess I'll just have to wait for them to come back to me with what they want me to do, I suppose I thought it would count in my favour if I was honest from the start. I mean, I can get everyone who's given me cash gifts to sign a letter or something, but it's like 5 years worth of birthdays! I haven't been able to find and hard fast rules on it, it only makes up about 15% of my whole deposit, and I can completely evidence the rest of it, and I'll be able to evidence the rest of the money I'll be using to pay the solicitor etc, as it will come from income.

Thanks for your help and advice

Mortgage_Moog

davidmcn wrote: »

But (I presume) you've still to prove to your solicitor where your funds came from, so they can comply with anti-money-laundering regulations? Which is an understandable concern for the OP without any evidence of where the cash came from.

Not much that can be done other than wait to see what the attitude of the solicitor is, there aren't any hard and fast rules about what checks they ought to make, and some are more laid-back than others.

Yes I did have to prove it to the solicitor so I suppose the bank relies on them to check. I thought before beginning this process that having to prove you have the deposit was an important step that the bank would have looked at carefully but they didn't seem to be too concerned how much money I had in the bank.