Mortgage offer at risk

na1

Hello. Need urgent advice - applied for mortgage using independent adviser and got it approved in no time ,valuation done quickly and offer followed same day. Deposit 5% from personal contributions sitting in my saving account - funds in it far exceeding required amount. I had couple of thousands of pounds left in my saving account from personal loan I took more than 2 years ago just in case and I shared this information with solicitor when he asked me for source of funds in my saving account. What he did next he sent a fax to lender saying part of my deposit comes from loan! Once I found out I rang him and tried to explain that money for deposit are my personal savings and not from loan but he said it is too late now as he faxed it already and when I kept explaining he actually said something about mortgage fraud. Lender obviously replied to him saying that deposit can't be coming from loan and they need proof it is being sourced NOW from legitimate savings. I provided solicitor with statements for last 12 months (didn't want to go further so nobody can say some of the money were from loan) showing build up of funds and paid every penny I had into saving account to proof deposit is from my own money. Since then I wait for any info as he is not replying to my emails. Mortgage adviser told me solicitor sent paperwork to lender and is awaiting reply. I worry sick that lender will withdraw the offer saying I provided them with false information at application stage which isn't true. What are my option if it happens? Please help

Neutrinno

I'm sorry but this is really hurting my head trying to read all that without any paragraphs etc..:huh:

muhandis

1. Are you still making payments towards the personal loan?

2. Was the personal loan declared in your mortgage application?

na1 wrote: »

Hello. Need urgent advice - applied for mortgage using independent adviser and got it approved in no time ,valuation done quickly and offer followed same day. Deposit 5% from personal contributions sitting in my saving account - funds in it far exceeding required amount. I had couple of thousands of pounds left in my saving account from personal loan I took more than 2 years ago just in case and I shared this information with solicitor when he asked me for source of funds in my saving account. What he did next he sent a fax to lender saying part of my deposit comes from loan! Once I found out I rang him and tried to explain that money for deposit are my personal savings and not from loan but he said it is too late now as he faxed it already and when I kept explaining he actually said something about mortgage fraud. Lender obviously replied to him saying that deposit can't be coming from loan and they need proof it is being sourced NOW from legitimate savings. I provided solicitor with statements for last 12 months (didn't want to go further so nobody can say some of the money were from loan) showing build up of funds and paid every penny I had into saving account to proof deposit is from my own money. Since then I wait for any info as he is not replying to my emails. Mortgage adviser told me solicitor sent paperwork to lender and is awaiting reply. I worry sick that lender will withdraw the offer saying I provided them with false information at application stage which isn't true. What are my option if it happens? Please help

amnblog

I suspect this will be resolved once the solicitor confirms that they were mistaken.

na1

Apologies - long story short

Deposit sourced over period of time from personal savings paid into my saving account but some of the funds already in the account coming from loan.

I informed solicitor about it when asked about source of funds in my saving account as I have much more money there that I need for deposit.

Solicitor then sends fax to lender saying that deposit is partially from loan (when it isn't) so now lender is asking for proof it is being sourced from legitimate savings. I provided solicitor with proof but haven't heard from him since and I am worrying lender will withdrawn offer. What are my options if it happens?

na1

Hi

1 Yes, I am still paying the loan back
2 Yes, I did disclose this information during application process. Lender did credit score check and information about the loan is there as well (check showing on my credit expert credit score account)

na1

When I tried to explain to solicitor he has made a mistake he basically said it is "mortgage fraud territory" so he is not admitting to making mistake. I could change solicitor but he is the seller's solicitor as well

JDi

Speak to the lender yourself to clarify the situation, dont rely on others if its that important to you.

muhandis

In that case it seems like an over eager solicitor who couldn't be bothered to clarify the matter.

In your place I would either -

- contact the lender myself to resolve the issue
- (if you have a good broker) ask the broker to chase this with the lender

I wish you luck.

na1 wrote: »

Hi

1 Yes, I am still paying the loan back
2 Yes, I did disclose this information during application process. Lender did credit score check and information about the loan is there as well (check showing on my credit expert credit score account)

Thrugelmir

How much do you currently owe on the loan?

How much do you have saved for your deposit?

LJG1985

Can you not just clear the loan with your savings if you have more than required?