Proof of Deposit and Bank Statements

lmartin87

I am in the process of buying my first home with my partner, with a purchase price of £243,500. I had a DIP from Nationwide and today had an offer accepted, but I have a couple of potential concerns.

Early last year the company I work for was acquired and I am a member of an EMI scheme. There was an initial consideration for my shares and there is also a Year 2 and 4 consideration which we're still working towards and which is based on continued financial performance.

At the time I didn't really know what to do with the money - and didn't immediately plan to buy a house (I originally intended to wait until Year 2 for a bigger deposit). Given interest rates are pretty dire, I got creative to try and maximise the benefit. I previously held 2 Tesco Bank Current accounts which pay 3% interest on balances up to £3,000 - so I opened a Tesco Internet Saver, deposited the majority of the funds in there and then transferred £3,000 out to each of the current accounts. I then moved my main bank to Nationwide - which I still use as my main account today, so I could open a regular saver - and took out one of their Help to Buy ISAs too - my partner did the same. I opened a 123 Lite Santander account and moved all of my main bill DDs to that, so I could open one of their regular savers too. Each month I've paid over regular amounts from my EMI funds into the regular savers, my HTB ISA and my partners. As a result, I ended up with money spread over various accounts all designed to maximise interest potential. Throughout the year I've also helped my parents out financially here and there, most of which they've now given back - so the overall balance has fluctuated a bit.

To prepare for a house deposit, I've now consolidated it all back into my (now) matured Nationwide Regular Saver (which has become a super low-rate Flex Saver - apart from out HTB ISAs. As far as I'm concerned what's mine is hers, we've been together for some time and are getting married next year anyway.

My concern is how I demonstrate proof-of-deposit. Solicitors are asking for a bank statement showing accruing balances - but I have loads of accounts I've used. I imagine Nationwide are going to want the same as well as review my bank statements - but they're going to find it very hard to keep up with my constant moving around of money!

Should I be worried?

Thrugelmir

Suggest you help your solicitor. Summarise the transactions/ movements onto a spreadsheet. Along with providing copies of all the account statements.

pink_pirlie

I have money spread here there and everywhere. I transfer money constantly between accounts all month to maximise income, cycle it around to meet minimum deposits required on each account and when I applied for my mortgage it was not questioned at all. That is not to say they will not question you. But as there is nothing adverse I am sure a quick explanation of the movements would satisfy them.

I think when they look at statements is to see if there is anything negative that you have not told them about - payday loans, gambling, etc. - and that your income going in is as per the pay slip you provide. Rather than audit every transfer in and out your accounts.

lmartin87

That's good to know. I wondered if it was about trying to prove true source of funds. I.e. is it a regular amount from my income every month over the years to build the deposit, or something else? Checking it's not actually a gift you're trying to pass off as savings.

One thing I can provide is a copy of my EMI statement which details the transaction and the funds I received last year - quite legitimately!

Supersy

We also moved a lot of money around accounts and nothing was ever asked.

pink_pirlie

I do not think they look at it that closely.

I had some of my deposit gifted and the bank asked me if it came with any strings or expectation to repay, I said no, and that was that. The rest of my deposit is coming from about 5-6 different accounts. It was only the estate agent that wanted proof before taking the property off the market, no one else has asked for it.

Unless something in your accounts flags there is something dodgy going on I think you are worrying too much.

They look for inconsistencies and other financial commitments, they are not searching every transaction for a reason not to lend to you if you meet their criteria generally.

davidmcn

pink_pirlie wrote: »

no one else has asked for it.

Your solicitor will (or ought to, anyway).