Loan return from friend before mortgage

skyview

Hi,

I am in the process of buying a new build house, I got some of the down payment in my account, but another 10K will be coming from my friend as he is returning the loan he took from me some time back. Will that trasnfer going to affect my mortgage application?

glentoran99

Why would it?

ACG

Possibly.
But if you have a bank statement showing the money was paid to them, you should be fine.

Thrugelmir

Any evidence available that you originally lent your friend the money? As receiving £10k in a lump sum just when you are buying a house seems somewhat convenient.

streetlovin

I am no expert but I think the reason why OP is worried is probably about money laundering?

A large sum of money transferred to your account out of nowhere seems convenient, especially when you won't be declaring it as a gift from friend or family etc. You will have to be able to explain where the money come from. If it is savings then they would ask to see savings account. As for me, my dad gifted me so they asked to see the bank statement showing my dad's name on the transfer to prove it is definitely from him.

As others have said, if you have the proof to say that you originally lend your friend the money and he is giving it back then it should be ok. You know, the story has to make sense..

amnblog

Classic Money Laundering alert for solicitors and brokers. £10K appears in the bank account from unknown source as deposit goes into purchase.

Our OP needs to evidence this £10,000 went out to his friend in the first place as ACG stated above.

kingstreet

Stay away from Nationwide;-

Unacceptable Sources of Deposit

Any loans taken out by your client, with the exception of:

borrowing from another lender against an additional property owned by the applicant (subject to affordability and criteria)

the repayment of a Limited Company Directors Loan. Please note the Limited Company accountants must confirm the monies are available and there is no detriment to the company by removal of the funds. This deposit must also be keyed as savings.

Loan from a Trust Fund, provided no monthly repayment is made and the only condition attached to the Trust Fund loan is that it is repayable on sale of the property. Any other form of loan from a Trust Fund is unacceptable.

Funding from credit cards

Repayment of a loan from a third party

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