Urgent advice need please regarding Source of deposit

dreamtrue

We are buying property cost £15000. We already got mortgage offer of £12000. So we have to pay £30000 deposit. Now solicitor asking to provide source of funds with 6 month statement of each account from where we are paying deposit. All the deposit we are paying from our savings & employment earnings. But here one thing I am bit of concern. Two years ago I gave 2400 loan to one of my local my close friend, who gave this money back this month by bank transfer to my account. As it is my money which was given to loan to my friend and got it back to my bank account.
I don’t want to show it as a gift money because it is my money which I got back. Do you think solicitor will be fine with it, if I verbally explain this thing to him? My friend is happy to give written letter that he took loan this amount from me and given it back to my account. He also happy to provide his ID, his payslip and bank statement. Please kindly suggest what should I do?

csgohan4

Check with your solicitor as that is the only way you will know, we don't know the lender nor your solicitors money laundering policies.


Be honest and see what your solicitor says

davidmcn

If you have a record of the money being transferred to your friend I expect that will help. But as above, ask your solicitor!

elliemet23

Morning!

We had a similar situation as I had loaned my sister some money... She had to write a letter to the mortgage provider to say that the money she had paid back is non refundable and can be used in anyway you see fit.

As long as they know you arent going to paying your friend back like a loan, they arent bothered

Hope this helps, good luck!

xxx

saajan_12

I think you've missed a 0 in some of those numbers. Assuming you mean £150k property with £30k deposit? Is the loan repaid by the friend £2.4k or £24k?

Definitely ask your solicitor what they will require, but I'd expect they'd want more clarification if its £24k as that'd be 80% of your deposit. £2.4k is likely negligible enough.

Guest101

dreamtrue wrote: »

We are buying property cost £15000. We already got mortgage offer of £12000. So we have to pay £30000 deposit. Now solicitor asking to provide source of funds with 6 month statement of each account from where we are paying deposit. All the deposit we are paying from our savings & employment earnings. But here one thing I am bit of concern. Two years ago I gave 2400 loan to one of my local my close friend, who gave this money back this month by bank transfer to my account. As it is my money which was given to loan to my friend and got it back to my bank account.
I don’t want to show it as a gift money because it is my money which I got back. Do you think solicitor will be fine with it, if I verbally explain this thing to him? My friend is happy to give written letter that he took loan this amount from me and given it back to my account. He also happy to provide his ID, his payslip and bank statement. Please kindly suggest what should I do?

Why would this be an issue at all? You simply provide the paperwork you signed when you loaned him the money