Source of funds for Cash for mortgage deposit?

yinhong

Hi,

Hoping there's someone here who can help as the forum has never failed to be helpful.

Basically me and my wife have been given £10,000 from our parents as a gift which we want to use towards our remortgage (i.e. to help towards reducing the current mortgage before we take up a new mortgage).

I'm aware that, as part of their anti money laundering checks, solicitors need to enquire into the source of funds. However, as the £10,000 was given to us in cash would this likely be acceptable to a lender/solicitor as we cannot provide any paperwork to definitely prove it came from their account to ours?

lee111s

Yes it should be fine, some of the older generation are known to be cash savers.

Your solicitor is the best placed to answer the question though.

G_M

So your parents took their yacht over to the Caribbean, stowed a load of ganja in the engine room, sailed back and flogged it off for cash.

Then handed over the moolah to you to buy a property?

silvercar

If you are using the money to reduce your current mortgage, the new mortgage lender won't see it. Nor will the solicitor. It will be a remortgage to a new lender amount unchanged.

yinhong

G_M wrote: »

So your parents took their yacht over to the Caribbean, stowed a load of ganja in the engine room, sailed back and flogged it off for cash.

Then handed over the moolah to you to buy a property?

Absolutely not!!


They went to Canada.

G_M

Ah! the traffickers new route of choice. Mexico/USA/Canada - at least until Trump builds his wall.

But respect to your parents. The North Atlantic is colder windier and more challanging than the carribbean run!

Guest101

G_M wrote: »

Ah! the traffickers new route of choice. Mexico/USA/Canada - at least until Trump builds his wall.

But respect to your parents. The North Atlantic is colder windier and more challanging than the carribbean run!

Also Mexican green?! - not too sound trumpish (there's a new adjective!) but really?!


Edit just saw OP's response. Canadian - much better!

theartfullodger

yinhong wrote: »

....Basically me and my wife have been given £10,000 from our parents as a gift which we want to use towards our remortgage (i.e. to help towards reducing the current mortgage before we take up a new mortgage)....

Cash? Folding money? Kinda hard to prove where it came from eh....

..... we cannot provide any paperwork to definitely prove it came from their account to ours?

What's wrong with bank statements??

Presumably they either transferred bank-to-bank (so copy of your bank statement) or withdrew £10k cash, gave to you, you paid it (copies of both bank statement) or dug out £10k cash from the stash cupboard (in which case I'd be most suspicious & report them to HMRC, relatives or not: If they have a valid reason & evidence for the spare £10k they happened to have lying around fine: If not, well, I think we know what most fair-minded persons would think has been going on...)

Bluebirdman_of_Alcathays

theartfullodger wrote: »

Cash? Folding money? Kinda hard to prove where it came from eh....

What's wrong with bank statements??

Presumably they either transferred bank-to-bank (so copy of your bank statement) or withdrew £10k cash, gave to you, you paid it (copies of both bank statement) or dug out £10k cash from the stash cupboard (in which case I'd be most suspicious & report them to HMRC, relatives or not: If they have a valid reason & evidence for the spare £10k they happened to have lying around fine: If not, well, I think we know what most fair-minded persons would think has been going on...)

Really? You think storing £10k at home is that untoward? I have one client who only deals in cash, and keeps it all in his house. I have no suspicions that he does anything underhand. He, however, has suspicions about the banking system.


https://www.thebalance.com/what-is-a-bail-in-and-how-does-it-work-1979089

theartfullodger

Frequently above board, honest: Usually with evidence of source-of-funds.

Sadly also frequently not above board, on the fiddle, with inexplicably & strangely little or no evidence of source-of-funds...

Thrugelmir

Bluebirdman_of_Alcathays wrote: »

Really? You think storing £10k at home is that untoward? I have one client who only deals in cash, and keeps it all in his house.

Source of the cash should be provable. Unless you are lucky enough to have a money tree at the bottom of the garden from which you pick the leaves. In this day and age untraceable cash immediately raises questions. From a business perspective is it worth the hassle. Plenty of other straight forward applicants to choose from.