Need advice ASAP about to complete on a property!!

gbell9292

Hi all,

My partner and I are about to complete on a property for £125k (LTV 95%).

Obviously this means we have been given FULL mortgage offer and are essentially 99% of the way there. We are just waiting on conveyancing to finish and then we are ready to sign and get the keys.

I have recently become very concerned that the solicitors may find.. issue with our finances. We are on a combined £45k per annum (before tax). Our £6250 deposit has come from savings and also a gift from my parents. My concern has arisen because a couple of years ago I took out a loan to buy a new car. I haven't finished paying it off yet, but at the time I did not end up spending all of the loan. In fact, there was between £3000-4000 left over. It may look like a large chunk of the deposit has come from the loan? Will the solicitors flag this? Or am I in the clear because we have passed the banks checks.

Any advice/comments on this would really put my mind at ease, or else allow me to try and find a solution before we get the biggest shock of our lives.

Cheers :A

kingstreet

How do you think they will find out?

Do they have access to the purchase price of the vehicle?

AnotherJoe

So it seems you didn't really save any deposit unless your parents gift was a few quid ? . If you've passed their checks why worry ? Perhaps just be sure you won't end up like this recent poster living from hand to mouth ? If you can't save can you afford the mortage the council tax the utilities etc etc?
https://forums.moneysavingexpert.com/discussion/comment/72370782#Comment_72370782

Get a budget together and work out why you think you saved when it seems from the figures you provided you didn't.

jessnat995

I doubt you will have a problem, Regardless if you used it, did you send them bank statements? i would have thought they would have asked question at that stage, with how strict they have to be now,

Muscle750

The loan obviously wasnt in anyway connected to the car ie you didnt walk into a dealer got a car on the knock and they gave you a extra £4k as a good measure etc. You wont have a issue as i can see the loan would have flagged up way before now and its unsecured

gbell9292

No issue with affordability.... currently renting @ £600 per month. Mortgage, council tax and house insurance will come in below £580 a month. We have v little debt and any we do have is reducing every month.

The money has sat in a savings account for a couple of years. I could have saved more, but because it was sitting there I spent disposable income on other things.

So general opinion is, if there was an issue it would have been flagged up by now?

GDB2222

gbell9292 wrote: »

No issue with affordability.... currently renting @ £600 per month. Mortgage, council tax and house insurance will come in below £580 a month. We have v little debt and any we do have is reducing every month.

Is the interest rate on the mortgage fixed, and if so for how long?

Could you manage if the interest rate went up 2-3% say? That would be £200-300/month extra. Could you get by at a squeeze and just cut back elsewhere?

AnotherJoe

gbell9292 wrote: »

The money has sat in a savings account for a couple of years. I could have saved more but because it was sitting there I spent disposable income on other things.

This is aside your original question but if you have £4K left over from the loan, and your parents gave you some money, let's say a couple of £k at least or it's not worth mentioning, and your deposit is £6k, where are the savings ? Had you saved up double then I would expect you'd have seen quite a drop in your mortage rate as you went from a 5% deposit to 10%.

gbell9292 wrote: »

We have v little debt and any we do have is reducing every month.

What about the £6k loan ? Why didn't you pay it off ? Presumably the interest rate is much higher than the savings account it's in ? it's not uncommon for people here to say something along the lines of "I have saved up £10k (oh and BTW have a loan of £15k outstanding) not understanding that means they havent really saved up at all.

gbell9292 wrote: »

So general opinion is, if there was an issue it would have been flagged up by now?

Yes because the loan is known about, I presume you haven't actually paid off the car loaned and it's on your financial statements.

Good luck in your new house hope it goes well, so much nicer in your own house than rented even if the responsibility does shift to you!

davidmcn

Solicitors will check the source of funds for the deposit, so the OP's concern isn't completely unfounded, but they're very unlikely to trawl two years back - a few months is more likely.