Mortgage proof of funds

john1234567890123

Hello we have recently applied for a mortgage and have now received the offer.
We have instructed a solicitor who has now sent us the forms to complete. We are using our savings and a gift from our parents which will equal to the amount required. The money is in a current account. Around 6 weeks ago we deposited £2500 cash which was £1000 from sales of unwanted items from market place and shpock. The other £1500 was from money we saved from cancelled holidays and doing parents shopping during the pandemic and lockdowns.
This money is seperate from the required deposit amount but shows up in my statements.
Do i only need to prove the source of the required deposit amount or explain the whole amount of my bank balance to the solicitor ?
Thank you in advance

user1977

Up to your solicitor, so ask them (or keep quiet until they ask!). There aren't universal policies about how they approach this.

john1234567890123

Ok thank you. So they will be interested in the whole of my bank balance and not just the amount required for the deposit which would be 100% traceable

john1234567890123

Has anyone else been through this ?

user1977

john1234567890123 said:

Ok thank you. So they will be interested in the whole of my bank balance and not just the amount required for the deposit which would be 100% traceable

Not necessarily, like I said it varies from solicitor to solicitor. Some will only look at the amount required for your purchase, others might take an interest in other large deposits.

Sunsaru

You may have to answer a few q's like "whats that for?" and "where did that come from?" but that should be about it in terms of your bank balance. They will probably ask for source of deposit and how you got it but they will definitely want to know about the gift. You must declare the gift and will need a signed declaration from your parents stating that it is a gift with no comebacks. Your parents 'may' also have to state where they got that money from but that is not a given. 

MaryNB

john1234567890123 said:

Has anyone else been through this ?

My parents gifted me a deposit and a little bit extra for furniture, repairs etc.
My dad being a man of cash manually deposited a large chunk of the money into my account and didn't keep the deposit slip so there was no evidence of where it came from. The rest of it was traceable and was enough to cover what I needed from him for the deposit so the solicitor didn't care about it. But that's just my experience. Nothing to say your solicitor won't ask about the £2.5k.

john1234567890123

Ok thank you . The amount needed for the deposit is fully traceable, it would just be the £2500 plus my wages would be remaining in my balance

john1234567890123

We have got our parents statements and they are happy to sign a decleration

BecsMags

We completed last week. We were also sent money from my parents towards renovation and buying new bits for the house , before exchange. These showed up on our savings statements but were never queried with the solicitors at all. I guess it's better to have info ready in case you are asked, and it probably depends on the solicitors.