House buying Bank Transfers

jehangir

Can anyone please give me some advice .




Currently most of my money is sitting in my Natwest business account earning next to no interest . The money is to be used to purchase / deposit on my first property which I itend to do hopefully in the next
year .



I wish to transfer it into the Coventry building society bank account for a better interest rate as the Natest highest paying account is around .5% .


I cannot transfer direct from my business account due to the fees involved so would need to transfer from Natwest Business to NAtwest Current then into the Coventry account .
My concern is that when I come to purchase a house the solicitor may ask where the money has come from .
Would it be a simple case of just showing the money being transferred direct from my natwest
account or could it throw up some problems .
Any help would be much appreciated

alchemist.1

You will probably get asked to produce bank statements showing the build up in the original account and in the savings account.

agrinnall

Surely you can't just transfer money from a business to a personal account anyway, there has to be a record of payment made from the business (for instance a dividend statement if the business is a limited company), and this is what will show where the money has come from.

davidmcn

agrinnall wrote: »

Surely you can't just transfer money from a business to a personal account anyway, there has to be a record of payment made from the business (for instance a dividend statement if the business is a limited company), and this is what will show where the money has come from.

I'm assuming (although the OP might want to clarify) that the business is just a sole trader, in which case they're free to transfer money between their business and personal accounts on a whim. The solicitors will need a paper trail of the transfers between the accounts.

If the business account isn't in the sole name of the OP then things become more complicated.

vansboy

I've just looked at Coventry, canty see a higher rate savings account better than Natwest

I've got one of the NatWest New accounts which pays 1%, but assuming you don't withdraw. If you do, you loose a months interest, but no other panelties.

Possibly make more sense to keep it all in one place and then evidence of funds would be easier to show, if need be.

VB

jehangir

Thanks for taing the time out to reply , yes just to clarify I am a soletrader . I opened the Coventry account as they pay around 1.3% , can you please tell me what is the name of the Natwest account as I can only find accounts which pay .5% ( my business account does not pay any ) .

jehangir

Thanks found the account - Premium Saver at 1% with interest paid monthly ( over £50000) as long as you do not withdraw not the best rate but may save hassle in the long run . Thanks again it is much appreciated