Proof of Deposit

WilliamMcBeard

Hi all,

Our situation is as follows:

Booked a meeting next week to put down a reservation fee for a new build. Expected completion end of August. The builder (Miller) has agreed to us depositing £1k on exchange and then the remainder on completion. We currently have around 2/3 of the deposit available with the remaining third to come from savings as we are moving into parents house for a short while to maximise deposit.

Is it possible to have a mortgage application agreed in these circumstances? Builder has also said 1/2 the deposit in exchange and half on completion is also fine. They are willing to give us £5k towards the deposit although I know that doesn’t reduce the amount we need to put up as it is HTB.

Hope that has made sense
Bill

Jacquelyne

Hi Bill, I’m not sure what you are asking exactly. Do you have a mortgage agreement in principle yet?

WilliamMcBeard

I do have an AiP yes. We are now at the stage where we want to apply for a mortgage. The overall deposit is £15k. The builder is happy with £1k at this stage and then £14k on completion in late August.

I guess I want to know if a lender will approve a mortgage when I only have around half of the required deposit? Will I need to prove my deposit in order to get the mortgage approved?

Bill

Jacquelyne

Do you know are you going to raise the rest of the deposit money? When I applied for my first mortgage, I had to provide evidence of where my deposit was coming from. Half of it was a gift from my parents and the other half was from my own savings. I had to provide a copy of my bank statement and also a copy of my parents bank statement to prove that the money was there. However, I think that was more to do with money laundering checks rather than the lender wanting proof that I actually had the required deposit amount.


I don't know whether things have changed in the last 5 years, but you may find your mortgage provider will want to see evidence of your deposit, just so they can do the necessary checks to ensure that the money wasn't obtained through illegal means.