Buying House - Only just off benefits

Jaxxy31

Hi, so we had our children and found that we needed to be on housing benefit for a while, as my partner was starting his own business and I couldn’t find a job that paid enough to cover childcare costs too.
We came off all benefits 2 months ago and I’ve started a new job (and childcare costs are now hardly anything). My Dad has now offered to gift us the deposit needed too.

We’re in the process of applying for the mortgage (just waiting on the offer) and have appointed a solicitor & put an offer in on a house. On the solicitors forms though I got the amount wrong and said Dad was gifting less with us making up the difference. We don’t have the difference and my dad is gifting the full amount.

The solicitors have asked for our bank statements for 6 months to show our part of the deposit for money laundering. I’m going to correct the amount my Dad is gifting and hope that covers it, but will they still need to see our bank statements? I don’t want them to see that 2 months ago we were on benefits as I feel that would go against us? Does anyone know if that does go against us?

I’m back at work full time and we haven’t had any more benefit money in, but does this look bad? To be honest I think the timing is wrong but the job/deposit etc has all come at the same time so seems silly to wait?

[Deleted User]

Personally, I agree, the timing is all wrong. You need more time to allow the dust to settle, save up a lot more so if something goes wrong again, you have a cushion.

Surely, if you explained to your father, he would appreciate that waiting a bit longer makes more sense?

Not being able to contribute to the deposit at all should really send large red flags up.

csgohan4

if you don't give bank statements to the solicitor they will not tell the lender they are happy. it is money laundering rules.


Lenders may also ask for your bank statements up to 6 months or more. If you have only been in your job for the last 2 months that may be an issue, some require 3 months payslips and require you to be off probation.


Did you get a broker to get a mortgage ?

Jaxxy31

Yes I think we should have waited the thing is we found a perfect house and basically got carried away. We’ve gone to a broker and he’s done the mortgage application we’re just waiting to hear back but now I’m paranoid the solicitors going to throw a spanner in!

davidmcn

The solicitors aren't looking at your income and expenditure, they're just wanting to check the source of the funds you're using as the deposit.

Jaxxy31

Thanks davidmcn, hopefully when I correct them that my Dad is providing the full deposit that should help and they won’t need to see my bank statements.
I’m sure the fact that we’re not receiving benefits now means it’s okay. Eek, I’m just so nervous about anything going wrong! ��

babyblade41

I don't want to put a "spoke" in as well but.... just moving will cost so even after completion it's amazing how the small things in the first few weeks add up.

I would encourage you to get some decent savings accrued to show that you realise what home ownership entails and a buffer so if and when things break as they invariably do you won't have trouble paying a mortgage
My advice would be to wait and get some financial security behind you first

Jaxxy31

Hi babyblade, yes luckily my aunt is also gifting us £6k to help with fees etc. They’re all really keen for us to get on the ladder and now I’m back to work full time we should have excess money each month. I know friends who have been given all their deposit by parents, it’s kind of what happens nowadays isn’t it.
The thing is if we pull out now we’ll probably lose nearly £1000 just to wait and reapply in 6 months?

AdrianC

So you don't even have an AiP yet from a lender?

Jaxxy31

We have the mortgage in principle, and the mortgage application was submitted to Halifax on Friday last week.

Comms69

You don't have an offer to lend you the money - stop everything else right now!