Solicitor asking for proof of funds

dipesh010

Hello, 
I am buying my first house and putting deposit of 105k of which 36k is oversea gifted from father and 69k is my savings.
My solicitor is asking evidence of how these savings accrued. I have sent 8 months bank statements but the lawyer wants to see exactly when the money entered into my account. That is kind of impossible as my father/month helped me with some money during university days (15k in 2011) which I did not spend.
I also manage to save up some money from my university maintenance loan (25k - from 2011-2015) 
Reset are the savings from work and help to buy ISA
I don't think the bank provides bank statements over 5yrs 
What can happen if I cannot proof above?  

Slithery

dipesh010 said:

What can happen if I cannot proof above?  

Then you will need to find a different solicitor to continue the purchase who doesn't ask as many questions.

ElizabethRose

Are you sure they're not referring to the gift from overseas?

Thrugelmir

Your solicitor will relay this back to your lender. £69k is a sizable sum to have accumulated in a relatively short period of time.  The onus is on you to provide documentary evidence.  8 months of bank statements is barely going to scratch the surface. 

MaryNB

I've just been through all this and was asked for a large amount of info and a narrative to explain it. My parents gifted me money from abroad.
Money accrued from savings was easy enough because I just had to show money gradually building as I earned. Lump sums going back a few years required a bit more work.

For my own savings I sent bank statements back to Jan 2020 showing savings going in after each payday. I also provided annual statements from my savings account going back three years showing my savings gradually increasing in a relatively uniform fashion.

My parents transferred money to my foreign bank account and I used TransferWise to move it to the UK. I provided a table to explain the numerous tranactions (had to deal with low daily transfer limits) from their accounts to my foreign account to my UK account. Bank statements were included to back up the table.

One parent had to provide several months of current account and savings account statements showing the savings increasing as salary was received. The other had to  get a letter from an employer confirming a retirement payout from 8 years ago and statements from long term savings account where it was held in the meantime.

We each provided a written statement explaining how we accrued the funds and used all the bank statements as reference documents.

 

davidmcn

You need to discuss with your solicitor, and either come up with evidence which satisfies them, or use a different solicitor. We can't tell you what your current solicitor must accept - it doesn't work like that.

dipesh010

ElizabethRose said:

Are you sure they're not referring to the gift from overseas?

Its my savings which she is after. What if I fail to provide this? at the end do they have to communicate this with the lender and they make the decision? 

davidmcn

dipesh010 said:

ElizabethRose said:

Are you sure they're not referring to the gift from overseas?

Its my savings which she is after. What if I fail to provide this? at the end do they have to communicate this with the lender and they make the decision? 

If they cannot obtain satisfactory evidence about the source of funds then they won't be able to use the money, so the transaction won't happen.

dipesh010

MaryNB said:

I've just been through all this and was asked for a large amount of info and a narrative to explain it. My parents gifted me money from abroad.
Money accrued from savings was easy enough because I just had to show money gradually building as I earned. Lump sums going back a few years required a bit more work.

For my own savings I sent bank statements back to Jan 2020 showing savings going in after each payday. I also provided annual statements from my savings account going back three years showing my savings gradually increasing in a relatively uniform fashion.

My parents transferred money to my foreign bank account and I used TransferWise to move it to the UK. I provided a table to explain the numerous tranactions (had to deal with low daily transfer limits) from their accounts to my foreign account to my UK account. Bank statements were included to back up the table.

One parent had to provide several months of current account and savings account statements showing the savings increasing as salary was received. The other had to  get a letter from an employer confirming a retirement payout from 8 years ago and statements from long term savings account where it was held in the meantime.

We each provided a written statement explaining how we accrued the funds and used all the bank statements as reference documents.

 

I am happy to provide them 5 years bank statements. The issue is that I been moving my savings from one bank to another (whoever provides the highest interest rate). I even open ISA saving accounts in few banks and closed those accounts once no longer require. I used cash as a withdrawal/ deposit method when moving money from one bank to another (I know big mistake!! that I now regret|). Do you know what can happen if I cannot provide all these  in depth info? can I still buy a house? 

Solicitor also need my father oversea bank statements pin pointing when that money came into the account. That account is open in 2009 and its very hard to obtain the bank statements going back that many years. If I do manage to provide them then the solicitor will most likely to say now show us other bank statements where this money is coming from. Thats like going around the circle 

dipesh010

davidmcn said:

dipesh010 said:

ElizabethRose said:

Are you sure they're not referring to the gift from overseas?

Its my savings which she is after. What if I fail to provide this? at the end do they have to communicate this with the lender and they make the decision? 

If they cannot obtain satisfactory evidence about the source of funds then they won't be able to use the money, so the transaction won't happen.

Is solicitor only checking where this money is coming from? i.e what if I get a proof that show 10k came into my from somewhere. Will that be okay? many banks don't show transfer details usually it says 'Transfer' 10k
Or do solicitor then ask where that 10k is coming from? get us that person bank statements too?

davidmcn

dipesh010 said:

davidmcn said:

dipesh010 said:

ElizabethRose said:

Are you sure they're not referring to the gift from overseas?

Its my savings which she is after. What if I fail to provide this? at the end do they have to communicate this with the lender and they make the decision? 

If they cannot obtain satisfactory evidence about the source of funds then they won't be able to use the money, so the transaction won't happen.

Or do solicitor then ask where that 10k is coming from? get us that person bank statements too?

Yes, and yes.