Decline for Deposit Source

arashtrip

Hi,

I am going to apply and there is an issue regarding my deposit source. Actually the deposit will be gifted to me by my parent but she cannot transfer it to my bank account directly (she is living in a country where there is no bank transfer to the UK).

The broker said the lender is happy but the issue is with the solicitor and they may not agree the process due to this issue. They said 80% it should be fine but they cannot guarantee this wont make the whole process failed.

Now, I have two options:
-go ahead and see what happens. If I am refused for the deposit source reason, will it have a very bad and negative effect on my future applications?
-I wait for another couple of months and then keep all the gift in my account and then declare it couple of months later as my saving. So no need to provide anything for gift.

Best Regards

davidmcn

How is she proposing to make the transfer?

I suggest you run it past your solicitor first to check what information they would need.

Thrugelmir

arashtrip wrote: »

The broker said the lender is happy

Solicitor works for and on behalf of the lender. The lender will act on what the solicitor tells them i.e. the facts.

davidmcn

Thrugelmir wrote: »

Solicitor works for and on behalf of the lender. The lender will act on what the solicitor tells them i.e. the facts.

And irrespective of what the OP or the lender want to happen, the solicitor has to comply with the anti-money-laundering regulations, which is probably the real problem i.e. how do you prove the source of funds if the money is moved around as cash?

arashtrip

The money wont be in the account in cash. It will be transferred from a bank account in the UK which is for the intermediary and does not show her name. But it will be in the form of a bank transfer from an account in the UK. She is also able to get a receipt from the transfer company in Iran.

Also, given the above facts which of the two scenarios do you recommend?

ACG

Call up the solicitor and ask them.

arashtrip

they said "it should be fine". But they said they cannot 100% guarantee it. I cannot understand why they cannot when they are actually assessing the case. So, I asked the question to see if anyone has any similar case?

ACG

Find a new solicitor. If they can not answer this in advance it seems a little odd.

arashtrip

Anyway, my main question is that if I am declined for not accepting the deposit source, will it have a very effect on my future mortgage applications?

Mithos

It might not help to wait a few months in any event because if the Lender is anyway suspicious about your source of deposit and it's been declared as "savings" they may ask for a statement spanning 6 months or so to verify this. The same for the Solicitors.

Unfortunately as the money is coming from abroad and Iran especially, it's likely to flag up and be more closely looked at.

As for your more pressing question, I would say that a mortgage decline on your credit file for the majority of Lenders in the current market isn't going to be a deal breaker. What's likely is the Underwriter will more closely look into why your previous application was declined before making their own decision. So basically taking you back to square one.

Hope things work out for you.

davidmcn

arashtrip wrote: »

Anyway, my main question is that if I am declined for not accepting the deposit source, will it have a very effect on my future mortgage applications?

There might be some misunderstanding - failing to satisfy your solicitor about the source of funds isn't going to stop you getting a mortgage offer, so there's no "black mark" on your credit record. It will however stop you being able to proceed with the purchase, because the solicitors won't be prepared to handle your money.