Paying deposit from different account than proof of deposit account

nadnerbsregdor1993

Hi all,

Might be overthinking this, but worried about doing something wrong and delaying buying process.

According to my solicitor I will be at the stage of sending my house deposit to them. I currently have my deposit stored in an Aldermore savings account. I have statements ready to send them to show where the money has came from.

My concern is that the Aldermore account only allows withdrawal to a nominated account (my Nationwide current account).
Would I be ok to withdraw the money from the Aldermore account to the nominated account and send solicitor the deposit from my current account, without having to provide an additional statement showing the money being withdrawn to the current account? 

Thanks

user1977

No, they'll (probably) need a paper trail showing how the funds have reached them. Is it a problem to provide the additional statements?

MWT

nadnerbsregdor1993 said:

Would I be ok to withdraw the money from the Aldermore account to the nominated account and send solicitor the deposit from my current account, without having to provide an additional statement showing the money being withdrawn to the current account?

No, they will need to see all the links in the chain...

Zerforax

Just send the solicitors an email explaining you will transfer the deposit from Aldermore to the nominated account (Nationwide) and then wire to the solicitors. They will advise if that is a problem.

datlex

Wasn't an issue for me.  My HTB at the time and other sources of funds were earning interest.  I paid via my current account.

K_S

nadnerbsregdor1993 said:

Hi all,

Might be overthinking this, but worried about doing something wrong and delaying buying process.

According to my solicitor I will be at the stage of sending my house deposit to them. I currently have my deposit stored in an Aldermore savings account. I have statements ready to send them to show where the money has came from.

My concern is that the Aldermore account only allows withdrawal to a nominated account (my Nationwide current account).
Would I be ok to withdraw the money from the Aldermore account to the nominated account and send solicitor the deposit from my current account, without having to provide an additional statement showing the money being withdrawn to the current account? 

Thanks

@nadnerbsregdor1993 Last time I bought, my deposit was sitting in a Premium Bonds account where the solicitor did their source of deposit check. When it was time to transfer it a few months later, I just withdrew it to my current account and sent it on from there. I don't recall the solicitor then asking for any more evidence to show the movement of funds.

nadnerbsregdor1993

Thanks for the help everyone. I'll email my solicitor and let them know I'll be sending via current account and ask if this will be a problem. No issue with getting a statement showing this transfer.

firsttimebuyer2024

I have a similar issue now. The source of fund check has been completed. However, initially I planned to use Moneybox Cash ISA for the deposit. However, I realised that the Moneybox cash ISA is not flexible. So I'm now thinking to keep the Cash ISA and use the same amount of money from another account for the deposit. However, I'm not keen on going through the source of fund check again, which is gonna take more time. Do the solicitors really check which account I pay them? 

user1977

firsttimebuyer2024 said:

Do the solicitors really check which account I pay them? 

Ideally yes, they should follow the trail of funds all the way through to the money hitting their account. Otherwise what's to stop a money launderer showing them an account with "clean" money, and then actually using "dirty" money for the purchase? Rinse and repeat.

We don't know exactly what process your solicitors use - but you don't want to risk it being a last-minute hitch.

silvercar

In my recent experience, the solicitor just gave details of their account that the deposit etc should be transferred to. The money was coming from 3 people, the 2 applicants and a gifted deposit. The solicitor wasn't bothered which accounts the money came from as long as the accounts were in the name of one (or more) of the 3 people.

user1977 said:

firsttimebuyer2024 said:

Do the solicitors really check which account I pay them? 

Ideally yes, they should follow the trail of funds all the way through to the money hitting their account. Otherwise what's to stop a money launderer showing them an account with "clean" money, and then actually using "dirty" money for the purchase? Rinse and repeat.

We don't know exactly what process your solicitors use - but you don't want to risk it being a last-minute hitch.

This may be true, but in practice I don't know how diligently the solicitors follow this, given that it would be quite easy for someone to send money from another account to the cleared account and then on to the solicitor. 

In practice our gifted deposit was verified by showing a statement from a savings account that had a notice period on it and an investment account, as it was easier and less invasive to show just 2 statements. We actually paid the money from a variety of current accounts and an easy access savings account. 

user1977

silvercar said:

user1977 said:

firsttimebuyer2024 said:

Do the solicitors really check which account I pay them? 

Ideally yes, they should follow the trail of funds all the way through to the money hitting their account. Otherwise what's to stop a money launderer showing them an account with "clean" money, and then actually using "dirty" money for the purchase? Rinse and repeat.

We don't know exactly what process your solicitors use - but you don't want to risk it being a last-minute hitch.

This may be true, but in practice I don't know how diligently the solicitors follow this, given that it would be quite easy for someone to send money from another account to the cleared account and then on to the solicitor. 

I've worked somewhere which would check the whole paper trail, so that would have been picked up. Different firms will draw a line in different places in how diligently they check, but as I said, you don't want to have a problem the day before completion when the solicitors query it.