Deposit source is our wedding money

aqf157

Hi, my wife and I got married 2 months ago, and we've just had an offer accepted on our first home! We are first time buyers.

It's humble abode and our deposit is £7k, around £4k of which we have saved and around £3k is an accumulation of all the money our family and friends gifted us for our wedding.

How does a paper trail work in this situation? Also, we have't even put it in our bank yet! We've just been dipping into it while enjoying the honeymoon period a bit, daft I know, but it was on the to do list

So now it's going to look even more dodgy us just putting it in to our bank now, because the wedding was 2 months ago.

Anyone got any advice here?

Surely we don't need to get 50 odd people who put money in our wedding card to declare it as a gift?

davidmcn

aqf157 wrote: »

How does a paper trail work in this situation?

It doesn't. It's the worst possible position to be in from an anti-money-laundering point of view. Even if you can evidence that you recently had a wedding, that proves nothing about whether the pile of cash is the gifts from the wedding.

So now it's going to look even more dodgy us just putting it in to our bank now, because the wedding was 2 months ago.

It can't possibly any worse than not putting it into the bank. If you hadn't already been making offers I would have said put it into the bank now, and at least after a few months it might be assumed to be your money (as the solicitor will often only want to look back 3 months or so). You'll really need to ask your solicitor.

Can you just use the cash for other moving-related costs and get the price itself together from other sources?

aqf157

Thanks for feedback/advice!

If you hadn't already been making offers I would have said put it into the bank now, and at least after a few months it might be assumed to be your money

We've made an offer, it's accepted, already started mortgage application with TSB. We told them that money for deposit was savings, same difference we thought at the time.

Can you just use the cash for other moving-related costs and get the price itself together from other sources?

I'm thinking to speak to the mortgage lender TSB to explain the situation and tell them that we need to get a short term loan for some of the deposit and fees. The mortgage amount is less than 2x our combined salary, and only 60% of what TSB were willing to lend us.

But is this mortgage suicide?

[Deleted User]

Tsb won't allow a loan for deposit. Only 1 lender I know of will.

TSB will probably be fine. I think their standard packaging is only a single payslip.
Its the solicitor you need to be talking to to see how to satisfy money laundering requirements

aqf157

Tsb won't allow a loan for deposit. Only 1 lender I know of will.

TSB will probably be fine.

So, does that mean I shouldn't get a little loan to cover the rest of the deposit? If I don't advise TSB it will show up as an undeclared financial commitment when they do a final search.

Rest assured I'll speak with solicitor what to do, just would rather save the hassle and extra admin costs and get a loan, because I was thinking of getting one for home furninshings anyway.

ACG

This wont be a problem.

It is £3,000 we are talking about. If it were £30,000 there would be a little more concern but anything below £5-10,000 is not really going to be raising any anti money laundering concerns unless you have a really anal solicitor. You will have a marriage certificate from 2 months ago, the story stacks up.

aqf157

So I shouldn't just get a little loan to avoid risk of anal solicitor?

The reason I ask is because I wanted some extra £ for home furnishings anyway. Do solicitors care how deposit is paid as long as they can see a legitimate trail?

Will TSB care about the loan, as long as we declare it and we are still within the payment affordability max which they have already calculated?

Neutrinno

aqf157 wrote: »

So I shouldn't just get a little loan to avoid risk of anal solicitor?

The reason I ask is because I wanted some extra £ for home furnishings anyway. Do solicitors care how deposit is paid as long as they can see a legitimate trail?

Will TSB care about the loan, as long as we declare it and we are still within the payment affordability max which they have already calculated?

No. As Deleted_User has already said, TSB won't allow part of the deposit to come from a loan.

getmore4less

Spend the money on normal stuff and your bank account goes up from income because you don't spend that

Bank some of it if too much to spend

Don't even think about credit til the deal is done.

Why not save up for stuff if the mortgage is going to be low compared to income.

aqf157

No. As Deleted_User has already said, TSB won't allow part of the deposit to come from a loan.

But what if I said it was for home furnishings? Surely that happens a lot? I'm just curious now. Thanks for advice

aqf157

Why not save up for stuff if the mortgage is going to be low compared to income.

That was the plan, after spending all existing savings on the wedding. However the landlord just put the house we are currently renting up for sale, which we have always considered to be the perfect first home/investment.