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Proof of deposit/proof of funds
NathanBrown123
Posts: 15 Forumite
I know that very few mortgage lenders will approve you if your deposit is made up with an unsecured loan. However, I'm wondering if this is more of a grey area?
I took out a personal loan of 15k for a car, as opposed to the car dealerships finance where I would be paying back far more interest. Long story short, the car I had in mind when taking out the loan didn't work out and I have ended up with a slightly cheaper car and have 3k leftover from the loan.
If I were to start paying this into my moneybox lisa account for the next year in smaller chunks, when it comes to applying for a mortgage a year or so down the line, how are they going to differentiate those monthly payments from my income and the loan for the proof of deposit?
I took out a personal loan of 15k for a car, as opposed to the car dealerships finance where I would be paying back far more interest. Long story short, the car I had in mind when taking out the loan didn't work out and I have ended up with a slightly cheaper car and have 3k leftover from the loan.
If I were to start paying this into my moneybox lisa account for the next year in smaller chunks, when it comes to applying for a mortgage a year or so down the line, how are they going to differentiate those monthly payments from my income and the loan for the proof of deposit?
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Comments
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@NathanBrown123 I wouldn't really worry about it. 6-12 months down the line, a relatively small amount such as 3k will be seen the same as savings.
No different than if you ring-fenced the 3k and used it solely for expenses while moving any savings into your LISA.I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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