Urgent Proof of Deposit help!

davidmcn

Deleted_User wrote: »

once the solicitor reports the details to the lender.

Do any lenders instruct the solicitor to report back to them on whether there's gambling involved? The CML instructions only require them to confirm it's the borrower's own funds, not what they did to earn the money.

[Deleted User]

davidmcn wrote: »

Do any lenders instruct the solicitor to report back to them on whether there's gambling involved? The CML instructions only require them to confirm it's the borrower's own funds, not what they did to earn the money.

Depending on the timescales I would argue that the gambling money would not be classed as the borrowers own funds in the same way that a parent paying money £50,000 in to the account 6 months ago would still be classed as a gift.

muhandis

Almost 30% of the deposit on my last purchase was from a lengthy period of matched betting. I used a dedicated current account for betting which was also used for all large-ticket spending and to fund P2P investments.

I just marked the source of deposit down as savings, it never even crossed my mind to declare it as gambling winnings. Maybe I was supposed to? :eek:

Your situation with a single large winning is of course a bit different.

Firsttimebuy1991 wrote: »

For providing proof to the solicitor, I am going to say it is “savings” vs a “gambling win” because I have saved up. My question is how far back will they ask me for? Will they ask to see back to December? Is it best I get a solicitor now to confirm proof of sources? I’m still property hunting but have a mortgage in principle

[Deleted User]

davidmcn wrote: »

Do any lenders instruct the solicitor to report back to them on whether there's gambling involved? The CML instructions only require them to confirm it's the borrower's own funds, not what they did to earn the money.

I think solicitors just do it to 'cover themselves' most of the time. I get queries that are clearly covered in the handbook, they just want the safety-net of the lender saying "yes"

For such a large amount I'd expect a "please confirm your mortgage offer remains unaffected" type letter from quite a few firms.

ACG

If they ask for 6 month bank statements and there is £60k in there, that does not show a build up of deposit. From an anti money laundering perspective, I cant see the solicitors being ok with it.

If you tell the broker/lender about the deposit and all is ok, your application can go without a hitch.

If you tell the broker/lender about the deposit and all is not ok, you have to look at plan B.

If you do not tell the broker/lender about the deposit and it comes out in the wash, you have to look at Plan B having lost money, time and then also potentially explain why a previous application had been declined AND have another credit check on you.

If you do not tell the broker/lender about the deposit, there is a slim chance it will slide through, but I think the chances of that are reliant on you having a lazy and busy solicitor.

Thrugelmir

Firsttimebuy1991 wrote: »

I heard they’d only want to see six months statements is that not enough to show a build up of savings?

If you are only saving £2-£3k a month. That leaves a large amount unaccounted for. While you know where it comes from the solicitor\lender doesn't. They will also require peace of mind. As they are also at regulatory risk.

Firsttimebuy1991

Thanks everyone! This is a bit of a tough one, others outside of this forum have told me that they essentially want to see where the money has been sitting for 6 months as opposed to that it’s just been transferred in overnight. Since I have been building up my savings on top I thought this would be enough. I think I’ll speak with A conveyancer before I submit my mortgage application and see if they have any issues. I think if I mention gambling winnings as a source of some of my deposit then it will raise red flags and I’ll get declined.

ACG

Lenders in the main are not bothered about gambling. The issue comes if the gambling is excessive or problematic.

As an example, if you had put a tenner on Leicester winning the title at the beginning of 2016(?) you would have won £50,000. A £10 bet is not excessive.

I am not saying it will or will not be an issue. I am just saying it is better to find out now rather than wait for it to all hit the fan (and stress about it in the meantime).

[Deleted User]

I had an purchase case go back 3 years for proof of funds recently. Plenty only go bakc 3 months as well. There is no hard and fast rule. Its just when the source of the funds has been established

Unless the people giving you responses outside of this forum are mortgage and finance professionals then I don't see what value their opinion holds.

Big dave down the pub said I only needed 6 months and I could get away with telling the lender a mistruth.

I've not been here for long but I'm starting to realise people only post here to try get the answer they want to hear rather than actual guidance.

You need to check with yiur lender that they are fine with the deposit. The conveyancer is not the person lending the money. You have enough to easily pass money laundering checks.

Thrugelmir

Deleted_User wrote: »

I've not been here for long but I'm starting to realise people only post here to try get the answer they want to hear rather than actual guidance.

How to circumnavigate rules is a national pastime, not restricted to this forum. Whether you are an individual or an organisation. Boils down to how much you value your reputation. The downside risks being considerable.