Deposit Query

mareen7

HI all,

Currently going through Help to buy process and speaking to solicitors about source of funds. I had initially sent them 3 month worth of statements dating from January 17 - April 17. However, they have come back and requested that since the closing balance of the December statement is £6k they want to see 2 years worth of bank statements for both savings and current account.

I supplied these but now they have came back and requested further clarification of some of the transactions over two years and asked for the source. I am quite stumped as to what to do because i have had the £6k over 4 years but have been using some of those funds on rainy days and topped it back whenever i had some spare cash.

Sometimes i have even lent the money to family and received the money bank via bank transfer or cash deposit. Now i am trying to place this puzzle together between both accounts and cant really recall some of the transactions.

here is my question - would the solicitor would just reject me based on not declaring everything fully or they would only reject the amount i cant declare? For example, if my deposit is £10k but £1k is untraceable - would they tell me that i failed and lose out on house purchase or tell me to get other means to fund the remaining £1k

Apologies if i confused you all.

just need some clarification as i have been thinking about this the whole day and it is stressing me out.

mareen7

Sorry to bump this back up. Looking to find answer soon as poss.

davidmcn

There are no hard and fast rules so you'll need to discuss with your solicitor, and let them form a view about it. If the balance hasn't actually increased over the two years then the transactions in and out shouldn't be relevant.

Thrugelmir

mareen7 wrote: »

topped it back whenever i had some spare cash.

Perhaps their underlying question is where this "spare cash" materialising from. As the activity doesn't appear normal.

mareen7

Hi Guys,

Thanks for your reply.

I popped into their branch and explained everything face to face with all the proof of where the money has come from over the two year (regardless of it attributing towards the deposit). I was told, it looks ok but now they have come back and said since the sums being transferred between accounts is still large (everything over £500) they have referred it to senior partner in the firm - I have no idea what this means!

I have chased few times but them not getting back to me is worrying me.

saajan_12

The time taken or lack of responses may just be them working slowly, don't stress about that being a reflection of how likely they are to 'reject' you.

As for the scrutinising bank statements, this might be the method of that particular solicitor. I had a similar situation with my deposit money being 'ready' ~12months before I actually purchased (due to delays in the purchase, me getting busy etc). During that time, I had a fair amount of in and out as I used the money for other things that were reimbursed later or short term loans to family.. The amounts were slightly larger and messy as some payments were done over a couple of days due to transfer limits etc, but overall the amount was constant. Neither my solicitor nor mortgage lender batted an eyelid beyond where the initial lump sum deposit came from.