Mortgage application and bank statements

jakeman123

My partner and I are about to apply for a mortgage, we have the agreement in principle and have passed the affordability checks and have had an offer accepted on a house.

With regards to the bank statements I've been reading the underwriters check payments in and out. My boss at work pays part of her salary into a savings account, but doesn't have a bank card apart from her joint account with her husbands, if she wants money to spend she has to transfer it to somebody for them to withdraw. On a few occasions I have allowed her to transfer to me and for me to withdraw. In January she transferred £100 and I withdrew it that day, in Nov £200 and another £400 in Nov.

Would this throw up any red flags, the payments themselves are small, but I'd be worried about the 'income' not being declared.

Advice apprecited.

ACG

Quite possibly yes. It could look like money laundering/tax evasion.

I would definitely speak to a broker about this as there are lenders less likely to question it for a variety of reasons. But I (as a broker) would want a letter from the employer confirming what happened for my compliance.

jakeman123

Thanks for this, I will get a letter from my boss and then speak to my broker tomorrow. Luckily they are only small amounts, so I don't think they would have too much of an effect. Maybe I am just worrying.

G_M

jakeman123 wrote: »

My boss at work pays part of her salary into a savings account, but doesn't have a bank card apart from her joint account with her husbands, if she wants money to spend she has to transfer it to somebody for them to withdraw. On a few occasions I have allowed her to transfer to me and for me to withdraw. In January she transferred £100 and I withdrew it that day, in Nov £200 and another £400 in Nov.

Irrespective of the mortgage application, this sounds like a very unusual, almost unbelievable) arrangement. Indeed my immediate thought is of either tax evasion (not sure how) or money laundering.

Surely no one sets up a savings account from which they cannot themselves make withdrawals?
Surely no boss would rely on an emplyee to manage their private finances?

Stop getting involved in...... whatever this is, and suggest she open her own current account to transfer her own savings to!