Deposit help

amanda_p

Unfortunately the lender will be very interested where the money comes from. They ask for full details of any incoming money to your account and also ask for backup details of the origin of the money. If for example parents gift/lend money they want to see the origin of the money i.e ISA, savings etc. They will also want to see evidence of how you have saved the money for a deposit for example through saving a percentage your salary, bonus etc. They need to see concrete evidence of this. My youngest son is in the process of buying a house and all the above had to be adhered to.

Pixie5740

cooltt wrote: »

Hi Sam
Unfortunately some rather naff advice so far.

You are the sole applicant so unless the cash in your account is obviously from dubious sources or is an unusually large amount then it will not be questioned.

Many people "borrow" a deposit from family, friends, whoever. If a family member gives it to you even better. The origin of your 6k (which is peanuts in terms of a mortgage deposit) will be of little interest to the lender. All a lender cares about is your ability to repay and what you tell them matches your credit file.

Contrary to popular hysterics around the new lending rules, lenders have no absolute lawful right to demand to know the origins of the funds in your account. Only those carrying out criminal investigation involving ill gotten gains can demand this.

Bottom line is IF asked, tell the truth the money is a gift and you are the sole applicant.

As for your other query about splitting up, write it on a piece of A4 paper what happens to the house, you sign it, your girlfriend signs it, a witness signs it. That is now a legally enforceable contract. If it makes you feel better get it done by a solicitor but for the purposes of legality its not necessary.

Oh the irony! :rotfl:

cooltt

amanda_p wrote: »

Unfortunately the lender will be very interested where the money comes from. They ask for full details of any incoming money to your account and also ask for backup details of the origin of the money. If for example parents gift/lend money they want to see the origin of the money i.e ISA, savings etc. They will also want to see evidence of how you have saved the money for a deposit for example through saving a percentage your salary, bonus etc. They need to see concrete evidence of this. My youngest son is in the process of buying a house and all the above had to be adhered to.

@amanda,@pixie Absolute nonsense! Post one single lender that has all that written down in their lending T&C's AND goes though it with you at the application.

Just for info I've just completed my 17th house purchase so i'm waiting with baited breath here.....

Pixie5740

cooltt wrote: »

@amanda,@pixie Absolute nonsense! Post one single lender that has all that written down in their lending T&C's AND goes though it with you at the application.

Just for info I've just completed my 17th house purchase so i'm waiting with baited breath here.....

All lenders and conveyancers acting their behalf have to comply with anti-money laundering regulations. In other words they have to be satisfied that your deposit is not coming from ill-gotten gains.

kingstreet

Money borrowed by applicant towards deposit = an issue (for some lenders).

Money borrowed by a third party towards deposit = no issue (usually) subject to gift rules.

Money gifted by non-relative towards deposit = an issue.

Money gifted by relative towards deposit = no issue.

Money gifted by someone who will reside in the property = an issue (for many lenders).

juniordoc

Sounds like you might need to save a bit longer before you're in a good enough position to get a mortgage?

tattycath

Pixie5740 wrote: »

All lenders and conveyancers acting their behalf have to comply with anti-money laundering regulations. In other words they have to be satisfied that your deposit is not coming from ill-gotten gains.

Totally agree with this. My position with telling them where my deposit is from is rather complicated and its holding things up at the moment.

Harryp_24

cooltt wrote: »

@amanda,@pixie Absolute nonsense! Post one single lender that has all that written down in their lending T&C's AND goes though it with you at the application.

Just for info I've just completed my 17th house purchase so i'm waiting with baited breath here.....

yes but your solicitor will have to work in the lenders interest as well, they will have to do money laundering checks and they will see that your partner who will be living with you has taken out a loan to pay for a deposit. they will have to inform the lender who could turn around and say no, youve lied about it ad your affordability isnt there.

More so should you be buying a house when you have to take a loan out to pay a deposit. no.