Source of funds

rbbb

First time buyer here and I'm finally looking into buying a property. I've lived with parents since leaving school (now 27) and have saved 80k despite a modest income of 24k. I've lived rent free - so have basically zero out goings.

Right from the start I've had my money in ISAs/peer2peer lending/multiple current accounts with the best rates/premium bonds etc... and over time switched to newer accounts as better deals come up. Problem is I haven't retained paper records for these previous accounts... and I'm concerned how much "proof" a solicitor needs of savings. Are my wage slips dating back 7-8 years enough? How far back do they trace? There's literally no way I could remember the ISAs/accounts I've had funds stashed away in...I wait for them to mature then switch to the latest best deal...I've done this every year for 8 years...I can gradually pool together the funds and leave it in an account for 3 months if it helps...

amnblog

I wouldnt even like to think what a lender would do with 7 of 8 years wage slips.

Where are your deposit funds now?

If in a bank account(s) lenders may ask for the last 3 months statements (three months so that they can be confident the funds were not transferred in from another source over recent weeks).

You are not on trial here, the law just asks the Lender to establish that the funds are from legitimate sources.

beckysheffield

Congrats by the way for living with parents and actually saving money.

davidmcn

The solicitors will also want proof of source of funds, and their requirements aren't necessarily going to be the same as your lenders. But as above, going back 3 months or so would be typical - you need to draw a line somewhere! As long as you have statements for the more recent accounts you should be fine.

rbbb

amnblog wrote: »

I wont even like to think what a lender would do with 7 of 8 years wage slips.

Where are your deposit funds now?

If in a bank account(s) lenders may ask for the last 3 months statements (three months so that they can be confident the funds were not transferred in from another source over recent weeks).

You are not on trial here, the law just asks the Lender to establish that the funds are from legitimate sources.

Ok brilliant. Just read some horror stories on here and got worried.

At the moment I have 50k premium bonds (I know it's not ideal investment, but wanted a tax-free pot to pool together a big portion), 20k in a savings account (and £1000 transferred each month), 3k in a help to buy ISA (£200 transferred each month). I've got 3 or 4 lower value accounts I plan on closing and adding to the savings accounts. Does this sound ok?

beckysheffield wrote: »

Congrats by the way for living with parents and actually saving money.

Thanks! My parents were very kind to help me.

davidmcn wrote: »

The solicitors will also want proof of source of funds, and their requirements aren't necessarily going to be the same as your lenders. But as above, going back 3 months or so would be typical - you need to draw a line somewhere! As long as you have statements for the more recent accounts you should be fine.

Phew. I was worried I'd have to account for every penny

ACG

Ask the solicitors what they would want. Some are fussier than others, some would just want a statement, others want some historic statements.

Nothing to worry about from what you have said, I would expect a lender to understand you have lived at home in order to save and on £2k a month give or take it is not an impossible amount to save up. I think I saved about £15k up when I lived at home... although that was about 10 years ago and my income was closer to £18k back then so not too dissimilar.

rbbb

ACG wrote: »

Ask the solicitors what they would want. Some are fussier than others, some would just want a statement, others want some historic statements.

Nothing to worry about from what you have said, I would expect a lender to understand you have lived at home in order to save and on £2k a month give or take it is not an impossible amount to save up. I think I saved about £15k up when I lived at home... although that was about 10 years ago and my income was closer to £18k back then so not too dissimilar.

Ok cool. Would you just suggest randomly calling up a local solicitor and asking them? I'm not in the process of buying yet, but want to get myself in the best position beforehand. Thanks, by the way. I'm so new to this so bit nervous

ACG

rbbb wrote: »

Ok cool. Would you just suggest randomly calling up a local solicitor and asking them? I'm not in the process of buying yet, but want to get myself in the best position beforehand. Thanks, by the way. I'm so new to this so bit nervous

Just check that they can do conveyancing for the main high street lenders - not all solicitors can work for all lenders.

But yes, just ask.

Or if you plan on going through a broker, they will know a solicitor most likely and so can speak to the one they know....Just avoid the estate agents brokers if you plan on using a broker.

Mr.Generous

All I and my brother have ever put on the form is "savings from wages" and the solicitor is always satisfied. He tells me he has never had a single check / enquiry / request for info on his money laundering paperwork ever, so he isn't too fussed.

davidmcn

Mr.Generous wrote: »

All I and my brother have ever put on the form is "savings from wages" and the solicitor is always satisfied. He tells me he has never had a single check / enquiry / request for info on his money laundering paperwork ever, so he isn't too fussed.

I would be slightly concerned about what other stuff your solicitor "isn't too fussed" about.

rbbb

ACG wrote: »

Just check that they can do conveyancing for the main high street lenders - not all solicitors can work for all lenders.

But yes, just ask.

Or if you plan on going through a broker, they will know a solicitor most likely and so can speak to the one they know....Just avoid the estate agents brokers if you plan on using a broker.

Great I know of a broker, so will arrange a meeting to establish how much I can borrow and then ask exactly what the lender/solicitor will need. Thanks for this, settled my mind! Hopefully I can buy a property soon! A long 8 years saving...