Deposits on my statements

obc18

We are looking to apply for a mortgage in the next six months and I’m trying to keep some good conduct on my account in the lead up to applying. 

Years ago I leant my cousin a bit of money (around 2k) as he was going through a tough situation, now that we are squirrelling money away for the house he has agreed to pay me back albeit in instalments which I really appreciate. At the moment he’s paying around £160 into my bank account each month on his payday. 

Will this look like odd behaviour to a lender? I can’t prove he’s paying me back for what I leant him as it wasn’t handed over in a lump sum anyway. This is simply just helping family out. Would they question it?

ACG

It could be picked up on and questioned. 
Probably worth checking with some lenders and the solicitors in advance.

[Deleted User]

Will this £2k be forming part of your deposit?  If so then I would expect a slight issue with it with certain lenders.   If you have a separate deposit then im sure it would be fine.  

We see bank statements every day with transfers from friends and family for various things (stag parties, meals out, football tickets etc etc) and these dont really cause any issues that cant be overcome.  

Just make sure your cousin has put a horrifically embarrassing reference on the transfer because that always brightens up the brokers day :-)

ACG

Deleted_User said:

Will this £2k be forming part of your deposit?  If so then I would expect a slight issue with it with certain lenders.   If you have a separate deposit then im sure it would be fine.  

Just make sure your cousin has put a horrifically embarrassing reference on the transfer because that always brightens up the brokers day :-)

This is a good point. If it does not form your deposit then it is not a problem. 
As is the other point. 

obc18

No it’s not part of our deposit, that’s in an ISA. Just wondered as it’s the same amount each month they might ask if it’s income or something. 

JustJane101

obc18 said:

We are looking to apply for a mortgage in the next six months and I’m trying to keep some good conduct on my account in the lead up to applying. 

Years ago I leant my cousin a bit of money (around 2k) as he was going through a tough situation, now that we are squirrelling money away for the house he has agreed to pay me back albeit in instalments which I really appreciate. At the moment he’s paying around £160 into my bank account each month on his payday. 

Will this look like odd behaviour to a lender? I can’t prove he’s paying me back for what I leant him as it wasn’t handed over in a lump sum anyway. This is simply just helping family out. Would they question it?

If you aren't applying for another 6 months, could he send it to one of his own savings accounts instead, and give to you as a lump sum after you've purchased so that you've got 3 clean bank statements incase it does get flagged up?

So far in my application regular transfers between me and my partner haven't been questioned, mind. Most are labelled with hilarious things mind, lol.

[Deleted User]

JustJane101 said:

If you aren't applying for another 6 months, could he send it to one of his own savings accounts instead, and give to you as a lump sum after you've purchased so that you've got 3 clean bank statements incase it does get flagged up? 

To be honest, this is why a lot of brokers and lenders will ask for more than 3 months of documents at random, to try catch manufactured behavior that has been done only to get the mortgage through .   

Just play it honest and it wont be an issue especially if your deposit is separate.