Solicitor not satisfied with proof of deposit

917700

Hi all

We received our mortgage offer from Halifax last week. Fortunately, it was through before the lender tightened their Income multiples. 

However, our solicitor is not satisfied with a part of our deposit. This part of deposit came from my wife’s parents 5 months ago. It will be 6 months by the end of this month. 

I am not sure, if my mortgage broker was asked to select the source of deposit when making the application. From my understanding, Halifax asked 3 months bank statements, so our deposit is from our ‘Savings’.

If my wife’s parents sign a gift letter. Will this cause any issue with the mortgage offer? 

I have another option is to withdraw more funds from my limited companies. I own 100% shares. However, this is not tax efficient.

What could I do to proceed the purchase?

davidmcn

917700 said:

What could I do to proceed the purchase?

What has your solicitor actually suggested - I presume they've said more than just that they're "not satisfied"?

MWT

Did you tell your broker that part of the deposit was funded by a gift?

Thrugelmir

917700 said:

What could I do to proceed the purchase?

Declare your parents gift and be prepared to provide evidence from them as to the source. 

Questions tend to get asked when people attempt to play games. Often an indication there's something not being disclosed. 

917700

davidmcn said:

917700 said:

What could I do to proceed the purchase?

What has your solicitor actually suggested - I presume they've said more than just that they're "not satisfied"?

They actually didn’t say ‘ not satisfied’. They said they only have about £xxx proof of funds on their file. And asked where is the remainder of the fund located.

I did send all bank statements to them, if they satisfy with that, the balance is well above the deposit amount. 

ACG

Sorry to sound grumpy but surely it would make sense to pick up the phone and call the solicitor and have a conversation than post on here?

Find out what the problem is and go from there. Speak to your broker after if that is required. Both of those people are working for you and both of them have access to your file. 

MaryNB

Contact your solicitor and get them to describe exactly what they're looking for and in what format.

I got my mortgage with Halifax. Some of my desposit was a gift from my parents in a different country. We had to send over a lot of info and my solicitor came back twice looking for more (equally vague each time). They may be looking for proof of accumulation of funds. Maybe supplying a narrative to go along with the bank statements would help (e.g. my take home pay is £xk, you can see my salary going into my account on the 1st of each month. I save £x amount each month and you can see this going into my savings account. I've been doing this for X years hence the £xxk deposit I have. £xxk is coming from this savings account, £xxk is coming from this other savings account).
I had to get my parents to supply proof of their savings. My mother had to provide proof of regular income and my father had to send over a letter from his former employer describing his retirement payout.
I also put a table together to describe the tranactions as they moved money from their accounts to mine.

Might not be as onerous as that but my parents were baffled by how much proof we had to provide due to anti money laundering regs.