Source of deposit funds

Hutch100uk

So I am literally ready to exchange. Sent my savings account statement as 'proof of deposit' on Monday. My solicitor then sends me the statement of account yesterday and I paid the deposit to my solicitor straight away as I'm keen to exchange ASAP.

TODAY (after already paying the deposit) my solicitor decides to come back to question that the deposits into the savings account have come from another account in my name, so they need a statement from that account too. This is fine, as its just my current account. However, some deposits into my current account came from another savings account which is now closed and I have no access to. Are they going to ask me for a statement from that one too?? its getting ridiculous.

Should my solicitor not have queried this before I paid the deposit! I'm now rather worried and my solicitor is impossible to get hold of.

Any advice?

davidmcn

You'll need to provide whatever they ask for. You should still be able to get copies of statements for closed accounts if you need to. How far back are we talking about? Often they'll only want to go back say three months.

Hutch100uk

They haven't been specific about how far back I need to go. Just that they need a 'paper trail' for the money. I understand why but you can clearly see the funds are being deposited into my savings account from another account in my name!

If I do need to try to request statements, I'm annoyed they did not check all this before I paid the deposit!

G_M

How near exchange do you think you are?

davidmcn

Hutch100uk wrote: »

you can clearly see the funds are being deposited into my savings account from another account in my name!

Yes, but in turn those funds could have been put into that account minutes earlier from somewhere completely different. They need to show that you haven't just channelled somebody else's money via your account(s).

Hutch100uk

G_M wrote: »

How near exchange do you think you are?

As close to exchange as you get after paying a deposit i assume! Completion date has been agreed for 1st November.

Hutch100uk

davidmcn wrote: »

Yes, but in turn those funds could have been put into that account minutes earlier from somewhere completely different. They need to show that you haven't just channelled somebody else's money via your account(s).

Fair enough but if you wanted to do this, I'm sure you could get around it. Just like a 'gifted deposit' could actually be a loan but they can't prove it. I'll see what they come back with but I might be quicker getting a gifted deposit letter at this rate.

Lurkingtoposting17

How would this be easier if the funds came from your account in the first place?! Who would you tell them gifted you the funds?!
Also that would likely require approval from your lender so I doubt it would be easier.

Also completion date isn’t agreed if exchange hasn’t taken place.

Hutch100uk

Lurkingtoposting17 wrote: »

How would this be easier if the funds came from your account in the first place?! Who would you tell them gifted you the funds?!
Also that would likely require approval from your lender so I doubt it would be easier.

Also completion date isn’t agreed if exchange hasn’t taken place.

Sorry I meant get my parents to gift me the money if that is just an easier way to show the source of the funds. I did this a few years back and all they had to provide was a gifted deposit letter and a statement of bank account to show they had sufficient funds.

Thrugelmir

Hutch100uk wrote: »

Fair enough but if you wanted to do this, I'm sure you could get around it. Just like a 'gifted deposit' could actually be a loan but they can't prove it. I'll see what they come back with but I might be quicker getting a gifted deposit letter at this rate.

Late in the day to say that the deposit is gifted. Simply raises more questions than it answers. Gifted deposit is to protect the lenders interests. As it pre-empts any other arangement made.

Lurkingtoposting17

I don’t think you’d find that would fly nowadays. My friend has just had to provide 6 months of bank statements from her mum and a pension statement to prove where her mum got her gifted deposit from.

Also lying to your lender is always ill advised.