Half Way Into Mortgage Application Can Now Buy Cash.

Retrogamer

Hoping some people here can offer some advise / insight.

I've been saving some money each month for approx 15 years and have accumulated a total of approx 41k.
A small but humble house came up for sale and ticked all the boxes i needed. It was 45k.
I was just short of buying it outright, so i enquired with my bank about the smallest mortgage they could provide. Smallest was 25k.
Worked out i could pay approx £190 per month over 12 years on the mortgage and would still have approx 21k for any future repairs and furnishing,
This was all being set up and documents sent to my solicitor etc.
A family member has recently advised to me, they can provide me with the remainder of the cash as a gift to buy the house outright and with no mortgage.
I'd much prefer to do this for obvious reasons, and although there's no obligation to pay it back (their words) i'll pay it to them anyway.
This is in Scotland also.

I've never bought a house before, so i was getting advise from friends, family and co-workers about the mortgage side of things but now i'm in unknown territory.
My solicitor has advised that as long as all the money leaves my bank, it's fine as long as the family member has no shared interest in the property (they don't)
Is this going to be as easy as going to the bank with my family member and transfering a large sum of money from their account to mines?
Will there be any additional fees for purchasing a house this way?
My friends have mentioned because my bank was in the middle of the mortgage set up, there may be some fees incurred by them for setting it up. Is this right?

Any advise is greatly appreciated.

davidmcn

Retrogamer said:

Is this going to be as easy as going to the bank with my family member and transfering a large sum of money from their account to mines?
Will there be any additional fees for purchasing a house this way?
My friends have mentioned because my bank was in the middle of the mortgage set up, there may be some fees incurred by them for setting it up. Is this right?

Any advise is greatly appreciated.

If you've already got a solicitor, why not just ask them these questions?
You don't need to go with your relative to the bank. They just need to do a transfer to your account. Your solicitor will need evidence of their account transfer and their ID for the purpose of anti-money-laundering regulations.
There won't be additional fees - if anything it reduces the work the solicitor has to do if there is no mortgage.
We don't know whether you have incurred any fees yet in relation to your mortgage application, you should have been told (and probably already paid them) if you had.

pinkteapot

Not only do you not need to go to the bank with your relative, I wouldn't go because I'd be worried the bank might think I'm coercing them in some way!

AdrianC

Retrogamer said:

Is this going to be as easy as going to the bank with my family member and transfering a large sum of money from their account to mines?

Four grand really isn't a "large sum of money" in the bank's perception.

Bookgal88

When I remortgaged, my provider (Nationwide) advised that I could choose not to proceed with the mortgage at any time until they released funds with no penalty. Maybe just call the bank you were getting the mortgage through and ask them if you decided you no longer needed the mortgage if there would be any fees payable. 
You don't even need to go into a branch to transfer the money (although you can). It can be done through online banking all in one go. 
There shouldn't be any additional fees for purchasing the property with cash. 

Retrogamer

davidmcn said:

Retrogamer said:

Is this going to be as easy as going to the bank with my family member and transfering a large sum of money from their account to mines?
Will there be any additional fees for purchasing a house this way?
My friends have mentioned because my bank was in the middle of the mortgage set up, there may be some fees incurred by them for setting it up. Is this right?

Any advise is greatly appreciated.

If you've already got a solicitor, why not just ask them these questions?
You don't need to go with your relative to the bank. They just need to do a transfer to your account. Your solicitor will need evidence of their account transfer and their ID for the purpose of anti-money-laundering regulations.
There won't be additional fees - if anything it reduces the work the solicitor has to do if there is no mortgage.
We don't know whether you have incurred any fees yet in relation to your mortgage application, you should have been told (and probably already paid them) if you had.

I have asked them these questions but their advise was incredibly vague. i.e " as long as the money comes out your bank account, it's fine" or "the bank may charge you a set up fee" but nothing for certain and they wouldn't comment / advise on the process of my relative transferring this money into my account aside from "as long as the money to pay for the house comes out of my account solely, all should be fine"
I haven't been advised of any set up fees so far.

davidmcn said:

Retrogamer said:

Is this going to be as easy as going to the bank with my family member and transfering a large sum of money from their account to mines?
Will there be any additional fees for purchasing a house this way?
My friends have mentioned because my bank was in the middle of the mortgage set up, there may be some fees incurred by them for setting it up. Is this right?

Any advise is greatly appreciated.

If you've already got a solicitor, why not just ask them these questions?
You don't need to go with your relative to the bank. They just need to do a transfer to your account. Your solicitor will need evidence of their account transfer and their ID for the purpose of anti-money-laundering regulations.
There won't be additional fees - if anything it reduces the work the solicitor has to do if there is no mortgage.
We don't know whether you have incurred any fees yet in relation to your mortgage application, you should have been told (and probably already paid them) if you had.

This makes sense, and is completely understandable from the bank's perspective as well.
Thank you for the advise both of you, i appreciate it.

AdrianC said:

Retrogamer said:

Is this going to be as easy as going to the bank with my family member and transfering a large sum of money from their account to mines?

Four grand really isn't a "large sum of money" in the bank's perception.

I got asked a lot of questions when i took out £3500 a few years ago to go buy a car so i wasn't sure what the process would be. It'll be £5500 from their account to cover the solicitor fees as well.

I'm more accustomed to saving money, than spending it so i appreciate all this might be common knowledge for a lot of people here, but to me it's all quite new.
That said, i really appreciate the advise and guidance. 

FtbDreaming

As the others have said just get the relative to transfer the money to your bank and be willing to evidence where their funds come from. 

Call up and cancel the mortgage application and ask of there are any fees whilst doing so. £5500 isn't a massive amount of money to a bank or solicitor (I know it is to us paupers) so it shouldn't raise too many questions as long as its a bank transfer and not put in in cash. 

Smodlet

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