PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Proof of Deposit

Options
Hi all,
I'm a first time buyer (and forum poster!) and am part way through buying a flat.  Our mortgage lender has just asked for proof of deposit; I've worked out that from the 1st of August using all of my money I can meet the deposit with about £100 to spare.  However, I'm worried the mortgage lender will be spooked, think this looks too tight and that they will reject my mortgage application.  I'm assuming completion will be in September, at which point I will comfortably have the deposit.  I'm also fortunate to be in a position where my parents have agreed to gift me money to help if I need it, but ideally I want to do this myself. 
Any advice on the following would be great:
- Can I use the money I will have in August/September as proof of deposit, or does it have to be the money I have right now?
- Should I get my parents to sign the gifted money form, even if I don't end up needing this?
- Does it matter if my proof of deposit is pretty much everything I have?  
Thank you!

Comments

  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    Ombre17 said:
    Hi all,
    I'm a first time buyer (and forum poster!) and am part way through buying a flat.  Our mortgage lender has just asked for proof of deposit; I've worked out that from the 1st of August using all of my money I can meet the deposit with about £100 to spare.  However, I'm worried the mortgage lender will be spooked, think this looks too tight and that they will reject my mortgage application.  I'm assuming completion will be in September, at which point I will comfortably have the deposit.  I'm also fortunate to be in a position where my parents have agreed to gift me money to help if I need it, but ideally I want to do this myself. 
    Any advice on the following would be great:
    - Can I use the money I will have in August/September as proof of deposit, or does it have to be the money I have right now?
    - Should I get my parents to sign the gifted money form, even if I don't end up needing this?
    - Does it matter if my proof of deposit is pretty much everything I have?  
    Thank you!
    if lender wants proof, they want it for now and are not interested in what ifs/ future

    Does not matter if the deposit is all your savings, but have you factored in other house buying costs?
    Gifting from parents is generally fine and they will need to sign a declaration for this
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • moneysavinghero
    moneysavinghero Posts: 1,761 Forumite
    1,000 Posts Fourth Anniversary Name Dropper Photogenic
    What % deposit are you putting down. If it's only 10% the mortgage provider are more likely to get spooked than if it was 25%. Have you budgeted for all the solicitor costs (unexpected costs can occur too) and moving in costs as well as your deposit?
  • Thanks both.
    It's a 20% deposit, it sounds like I should involve my parents so that I can prove I have the deposit now rather than putting the application on hold for two weeks until I will have the deposit myself.  Yes, my salary from 1st Sept accounts for all the other house buying costs, and again my parents are in a position to help.
  • MovingForwards
    MovingForwards Posts: 17,149 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    Do you have any of the deposit? It's one thing having 90% and needing two wage packets to get the remainder, having demonstrated you have been saving £X for X months / years, another to have no deposit saved yet.
    Mortgage started 2020, aiming to clear 31/12/2029.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.6K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.