Mortgage deposit audit trail

Adebowale

I and my wife have saved aggressively in tins for over 2 years as part of our mortgage deposit, opened up the tins when we started looking at properties, we managed to have saved up a little over £10,000. This was deposited in the bank as we knew once we found a property they will ask for an evidence for the mortgage. Now our broker has said he won't be able to proceed as he cannot prove the source of the £10,000 except for the date the cash was deposited. I totally get where he is coming from but my wife is distraught.

We have now both setup a standing order to have funds transferred to our savings accounts every month on our pay day. My question is, would there be a problem 6 months time if we both save £750 a month to the tune of the £10,000?

PField

Strange that your mortgage broker is asking about proof of deposit. This is for your solicitor to be satisfied with.

Adebowale

Surprised too, but I was thinking if he had a problem with it the solicitor might as well.

David_White

PField wrote: »

Strange that your mortgage broker is asking about proof of deposit. This is for your solicitor to be satisfied with.

I would be extremely concerned if a mortgage broker wasn't asking about proof of deposit!

Saving up £10k in cash is a bit of a hard sell due to plausibility.

Do either of you work in roles that handle lots of cash i.e a taxi driver?

ACG

Your broker has actually done you a favour. We (Brokers) DO have an obligation to ensure you are not laundering money, as does the bank and solicitors.

However, to look at it from the customers perspective, the broker has just saved you a grand if not more. Would you rather the broker pick up on it at the beginning or after you have paid for a valuation and searches and then the solicitor tells the lender who decline you?

Based on what you have said, I completely understand the brokers position and I would be 50/50 on taking it on myself.

However, you are now transferring money between accounts to make it appear legit...that is exactly what a money launderer does and I can guarantee I would not touch the application with a barge pole.

I have a rule I stand by for every application - do things right or do not do it all. By that I mean, you have a situation which is less than ideal. However, rather than try to make something appear different to what it actually is, be open and honest and try to find a lender/broker/solicitor who will do things with the circumstances as they are.

amnblog

Last time I had one of these with '£30,000 cash deposit under the bed' I was able to provide photos of the wedding and the Bride's dress covered with cash.

You don't say where the £10,000 cash has come from. If you do not have a legitimate explanation you have a problem and I, as a Broker, would not want to put my name to it.

Adebowale

Many thanks for this. The aim is not to transfer money through accounts. We both work and earn close to £4,000 a month and with payslips to prove this. All i was saying is to save aggressively from our salaries from now until we have enough for our deposit. And I was hoping this wouldn't be an issue as what we would be saving wouldn't be affecting what our outgoings for the month are currently.

If we cannot save from our salaries, how else do they expect us to get the money. Confused much.

amnblog

Are you saying you are paid in cash?

Adebowale

No, we get paid through our bank accounts, and from our bank accounts we will both save for the deposit.There is the end of the year bonus to factor into this too. What i am saying is it wouldn't be too much of a stretch to save the deposit we need from our salaries between the next 6 - 8 months. Would there still be an issue if it is clear that all the savings have been made from our salaries?

Adebowale

Sometimes these things are cultural. I wouldn't speak for anyone but there is nothing strange about getting sprayed a lot of money at your wedding party its all part od some cultures. I think what people should do is to learn and adapt to the culture of where they have chosen to emigrate to. Back where I am from people do not trust banks and would rather save locally or or make daily thrift contributions.

I remember when we thought getting a credit card and other credit facilities was a bad thing not knowing that it is key to having a strong financial standing in this environment. Like I said earlier it is not for the UK to change the way they do things but for immigrants to learn the British way of doing things and adapt to it very quickly.