Source of deposit changed...

Anamox

Hi,

My initial mortgage application stated that the source of my new deposit was from sale proceeds of the current property. Since then we took a reduced offer on a property after the sale fell through, and there is now a small shortfall on the equity release. I can still afford the deposit but I'm in two minds about telling the mortgage lender, I'm aware they may be looking for any reason to bin me off as I only just scraped into their lending criteria anyway and with COVID19 they may dubious about 10% deposit customers.

My new source of deposit will be from my sale proceeds and my personal bank balance, potentially nearer the time if there is a shortfall in my bank due to any emergency purchases my partner will loan me the money. The amount I need to take from my bank or partner is likely to only be £4-5k. 

Has anyone had experience of this, and has it been an issue if you didn't let your lender know? Is it best if the partner sends me the money well in advance just in case it's needed?

NatalieAGC

your lender may accept different source if it meets their criteria, however the solicitors will dig deeper as acting in the interest of lender also and to satisfy AML criteria.  you will need the full deposit in time for when the solicitors want it for exchange.  in terms of loan from partner they will possible query it and want also 6 months bank statements.  im not an expert but that's the impression I get from the process.