FTB Mortgage Deposit - Money split in multiple accounts (current and monthly saver)

AdrianIsabel

Hi,

We are planning to buy a house in the next months; just got a AIP and it matches our needs. Our question is the following: will we be able to use the money we have in multiple current accounts and monthly saver accounts as deposit? We have 7 current account, 6 monthly savers and one HTB ISA (we will not be able to use the government top up because of the house price), the monthly savers will end in the next months (later one ends in May) but we could take the money out if needed. We could move all the money to a single account or two for making the full mortgage application easier, if needed, but it would be nice to keep the money split as longer as possible

Thanks in advance,
Adrian & Isabel

[Deleted User]

You can use money from anywhere as long as you can prove its yours (or a gift is acceptable to the lender).

Expect the solicitor to request you put it all in one account before getting ready to send it to them. And then expect to have to provide 3-6 months of statements for every account where the money has come from.

AdrianIsabel

Ok so it will be at a later step after getting a FMA accepted? Anyway, we will start to "unify" those with lower interest rates (only £45/year interest each) for easier process as soon as they end.

On the other hand, maybe we do the application in single name. Would it be considered as gift if the money has been moved 3 or 6 months before from accounts that are not in applicant name but the partner name? We have been living together for more than 5 years and have two children together but we are not married (yet, planning to).

Thanks

[Deleted User]

AdrianIsabel wrote: »

Ok so it will be at a later step after getting a FMA accepted? Anyway, we will start to "unify" those with lower interest rates (only £45/year interest each) for easier process as soon as they end.

On the other hand, maybe we do the application in single name. Would it be considered as gift if the money has been moved 3 or 6 months before from accounts that are not in applicant name but the partner name? We have been living together for more than 5 years and have two children together but we are not married (yet, planning to).

Thanks

Depending on the lender they may not allow you to do the application in sole name with the other party living in the property.
If you do a sole application and you get part of your deposit from someone not named on the mortgage application then it is a gift. Pretty much all lenders accept gifted deposits but a lot will refuse if the person gifting is going to live in the property.

As long as you've got online access to statements or transactions then don't worry too much about it all. It might mean 30 minutes to download a whole heap of statements for the mortgage application but the broker can sift through it all to sort it all out.

AdrianIsabel

So it looks like it will be a bit simpler if we do a joint application.

Thanks

AdrianIsabel

One missed question. Two of the current accounts are kids accounts (Kids Savers from Halifax, that allow withdraw at any time) and the adult in trust is the same that will be the main applicant for the mortgage. The money (10K, 5 + 5) was moved in to these accounts from an account from the same applicant months ago. Will these accounts/money be considered as gifted deposit? Will it has any impact on the process? If so we can move the money out from them now, and wait some months until it is not considered gifted.

Thanks in advance

[Deleted User]

AdrianIsabel wrote: »

One missed question. Two of the current accounts are kids accounts (Kids Savers from Halifax, that allow withdraw at any time) and the adult in trust is the same that will be the main applicant for the mortgage. The money (10K, 5 + 5) was moved in to these accounts from an account from the same applicant months ago. Will these accounts/money be considered as gifted deposit? Will it has any impact on the process? If so we can move the money out from them now, and wait some months until it is not considered gifted.

Thanks in advance

I certainly would count those kids accounts as your own funds. Solicitor may view it differently but logic would certainly apply in the end i'm sure. I wouldn't be worrying about that if i were in your shoes.

AdrianIsabel

Again, thank you so much for the quick response.