Source of part of My Deposit

skywalkerme

Hello,

I am a FTB and been saving for a deposit for a while.I have just found a property with my offer accepted. MY deposit initaially was £15,000 Before making the offer. on a house of $200,000, I have add money come in to my account to a tune of £5,000 from 2 of my friends. This were money i was being owed for a long time but this was paid into my account 3 weeks ago after hassling them bumping my deposit to £20,000 for 10% mortgage. I am just about to apply for my Mortgage. Will this money be an issue with the lender?

AnotherJoe

It might be a minor issue, they may require a letter stating that this money is not a loan. Get your friends to write a very short letter each stating that this is a repayment for a past loan

David_White

This could be a tricky one depending on which lender you use as many may just class it as a gift from your friends which most won't like.

Is there any paper trail at all of you giving them the money originally?

*Another consideration - Your Solicitor is going to ask for proof of deposit so you may want to run the question by them also.

orangesmartie

You'll need to prove where it came from. Letters from the friends stating the reason may suffice. My broker told me with a family gift, I'd need a letter, stating it was a gift with no expectation of repayment, and my family member would likely need to provide ID and proof of where they git the money.

In the end luckily I didn't need it

amnblog

The Lender may so no, they may ask for proof the funds were lent in the first place, they may take your word for it - this all depends on the lender.

Have a broker manage this for you.

Thrugelmir

skywalkerme wrote: »

I have add money come in to my account to a tune of £5,000 from 2 of my friends. This were money i was being owed for a long time but this was paid into my account 3 weeks ago after hassling them

That's very convenient. Do you think that lenders haven't heard this story many times before?

skywalkerme

Thanks Everyone for your comment

Yea i got paper trail for both on my account

NinaSwiss

I imagine you should be ok ...as long as your friends are happy to sign a statement (if queried by lender/solicitor) saying that is is not a loan which needs to be paid back.