Help with issues buying first property

da_rule

Right, so you post saying that we need to re-read your original post as you have the money for the deposit and fees but now you're saying that you didn't say anything about fees in your original post.

Anyway, the reason they want to see £30k is because without that amount of money you cannot afford to buy the house. You could afford the purchase price, but not the other associated costs. Therefore they would be concerned that you couldn't complete (and they wouldn't get their commission).

amateur_house

I read the OP as saying that the vendors are asking for proof of £30K savings and not that they have £30K. The OP is questioning why they need to see proof of £30K when the 10% deposit will be £25,800. Though £26K savings only leaves £200 for other costs (stamp duty, legal fees, valuation / survey), and those will add up to a lot more than £200.

Ooops, cross posted with above posts

Ara1985

RedHitman wrote: »

Yes the solicitor and bank will ask for a letter from your parents confirming the money is a gift and that they hold no equity in the house.
If and when you pay them back is your call, but legally your parents will have signed a statement saying you don't owe them a penny.
This is what I had to do. Although my money actually WAS a gift.

As others have said, your sums don't sound right, so no wonder the estate agents, mortgage brokers etc are asking for proof of funds first.

Why are my sums not right?

The property is £258000, I have £26000 in my bank which is for the 10% deposit (+£200 which some seem to be getting petty about)

Plus I have my fees separately, which I didn't mention in my original post but I won't have any trouble paying.

Only the EA are asking for proof of funds of course my MB has all my payslips and bank statements, not sure who etc is?

marliepanda

Ara1985 wrote: »

Why are my sums not right?

The property is £258000, I have £26000 in my bank which is for the 10% deposit (+£200 which some seem to be getting petty about)

Plus I have my fees separately, which I didn't mention in my original post but I won't have any trouble paying.

Only the EA are asking for proof of funds of course my MB has all my payslips and bank statements, not sure who etc is?

So you do have 30k floating around to show them? (this amount seems appropriate for the deposit plus fees)

So what is the problem?

Ara1985

amateur_house wrote: »

i read the op as saying that the vendors are asking for proof of £30k savings and not that they have £30k. The op is questioning why they need to see proof of £30k when the 10% deposit will be £25,800. Though £26k savings only leaves £200 for other costs (stamp duty, legal fees, valuation / survey), and those will add up to a lot more than £200.

Ooops, cross posted with above posts

i have the fees!

Ara1985

marliepanda wrote: »

So you do have 30k floating around to show them? (this amount seems appropriate for the deposit plus fees)

So what is the problem?

So do you see why I asked the question? To clarify why they are asking for 30k and all you had to say was 'Because they want to know you can afford the fees'
Simple.

da_rule

Ara1985 wrote: »

Why are my sums not right?

The property is £258000, I have £26000 in my bank which is for the 10% deposit (+£200 which some seem to be getting petty about)

Plus I have my fees separately, which I didn't mention in my original post but I won't have any trouble paying.

Only the EA are asking for proof of funds of course my MB has all my payslips and bank statements, not sure who etc is?

So you have the money. Show them the two bank statements (or transfer it into one and show them that) and it's sorted. If you don't have the statements the EA's may accept a screen shot from online banking or you showing them on an app. Or just pop into a branch and ask them to print off your balances.

Matt_L

I would say that without question you will have to produce a letter signed by your parents stating that any monies they have gifted you is in fact a gift....

da_rule

You need to remember as well that the EA doesn't work for you, they work for the seller. Therefore they have to make sure that you have a realistic chance of completing the transaction as this is the best outcome for their client.

RedHitman

Ara1985 wrote: »

So do you see why I asked the question? To clarify why they are asking for 30k and all you had to say was 'Because they want to know you can afford the fees'
Simple.

And it didn't occur to you that they're asking for proof of funds in order to, you know, actually see that you can afford the house (and associated costs)...?!
Wow.