Mortgage Deposit

SunshineRay11

Hi all,

I am in the process of applying for a mortgage after having an offer accepted on a new build as a first time buyer using the HTB scheme.

We are pretty confident will get accepted and have a Mortgage In Principle from Natwest. But after scouring the internet its got me a bit scared of been rejected.

For the last few months I have been selling stuff weekly on Ebay/Etsy like crafty bits and bobs/old furniture that I’ve restored to help top up savings faster for all the fees and extras, as we wasnt planning on buying this earlier but after seeing an upcoming development been released that we fell in love with, it came around a bit earlier.

I suspect we will get asked about these deposits into savings? Will the lenders see it as undisclosed income? I haven’t disclosed it in the income section as we aren’t a business and it isn’t income, but I’m worried they will frown upon it now?

Anyone been in a similar situation?

ACG

They may ask, but technically even if it is an income (I am not HMRC) as the tax year does not end until April and you have until the following January to declare it, they would not accept it as income without evidence (in the form of self assessments) anyway.

If they ask, just tell them it is a hobby or whatever you would class it as.

Thrugelmir

The solicitor is only going to be concerned with the source of your deposit. Not whether you've declared it as taxable income. If the money has been generated through Ebay sales then there's an auditable trail if the sum involved is signficant.

SunshineRay11

Thanks for the quick reply. I thought as such, I aren’t concerned about them considering or not considering it as income.

What I am worried about is that my deposit will be scrutinised? As It has helped top my deposit up as well as me and my partner paying about 1-1.6k monthly too. I think I am over thinking it, Im just a worrier haha

Thrugelmir

SunshineRay11 wrote: »

What I am worried about is that my deposit will be scrutinised?

Yes it will be. To what degree depends on a number of factors. Provide plenty of evidence at the outset, be open and you'll encounter no issues. People with something to hide do tend to stand out.

John-K_3

SunshineRay11 wrote: »

Hi all,

I am in the process of applying for a mortgage after having an offer accepted on a new build as a first time buyer using the HTB scheme.

We are pretty confident will get accepted and have a Mortgage In Principle from Natwest. But after scouring the internet its got me a bit scared of been rejected.

For the last few months I have been selling stuff weekly on Ebay/Etsy like crafty bits and bobs/old furniture that I’ve restored to help top up savings faster for all the fees and extras, as we wasnt planning on buying this earlier but after seeing an upcoming development been released that we fell in love with, it came around a bit earlier.

I suspect we will get asked about these deposits into savings? Will the lenders see it as undisclosed income? I haven’t disclosed it in the income section as we aren’t a business and it isn’t income, but I’m worried they will frown upon it now?

Anyone been in a similar situation?

How is it not income? It sounds like earnings from a business.

SunshineRay11

Thrugelmir wrote: »

Yes it will be. To what degree depends on a number of factors. Provide plenty of evidence at the outset, be open and you'll encounter no issues. People with something to hide do tend to stand out.

Thank you for your help, I was going to provide as much as I can all at once anyway to speed the process up and make it easier

John-K wrote: »

How is it not income? It sounds like earnings from a business.

Is selling your belongings an income or business? !!!129300; Ive painted/decorated old furniture and house accessories and sold them on to help gather funds for a deposit, now I’ve got the money and frankly nothing left to sell, it won’t be happening again. I never bought items with the intention to resell and make a profit, its just items around my home so I’m pretty sure this is not classed as a business?

Thrugelmir

SunshineRay11 wrote: »

Thank you for your help, I was going to provide as much as I can all at once anyway to speed the process up and make it easier

By far the easiest approach. Accept that the professionals involved have certain tasks to fulfill as part of their role. You'll encounter enough stress during the process later on. Without creating unneccessary stress for yourselves. :beer: