Deposit Proof?

Yorkshiregirl1986

At what point is the proof of deposit required?

We are FTB and have a DIP already and are being gifted our deposit from both our fathers. My dad is releasing some existing funds from his larger pension pot and father in law is helping via his house sale (my brother in law is buying the property from father in law private sale) it’s now at the stage of mortgage offer…..

We have found a house quite quickly which we don’t want to lose out on and want to a make an offer will this hold us back? Or should we explain to the solicitor the sources of deposit and they will be able to provide bank statements in the coming weeks?

It could all well be sorted before we proceed further with our own application but there is a chance it may not

nyermen

There's two parts, depending on what you mean:
1) Possible "proof" that you have funds (deposit + DIP) to the Estate Agent / seller to show you're serious (I didnt have to do this in 2019, but it appears to be much more common now).  They would ask for this pretty soon after you make an offer (and in some cases, they demand this before they'll arrange a viewing.
2) Proof of source of funds to your conveyancer - this is where you have to prove where the money came from for money laundering etc. purposes.  Much of mine came from inheritence (i had to provide bank statement plus copy of the will) and the rest from savings (i had to show statements showing the savings account plus transfers from my current account each month.  They only cared about a year for that).  My conveyancer wanted this pretty soon after I chose them - it was the first stage of the process.

Rumana03

I had to fill in a gift deposit form for my husband's property purchase. I did this before the final mortgage offer but it now turns out that the bank have yet to check and approve the form. Not sure if this is normal or whether they are supposed to have checked the form before offering the mortgage but this is now delaying us as this is the only thing holding up completion.
I had to provide bank statements to show where the gifted deposit is coming from. They ask for 3 or 6 months bank statements.
Which bank is it? We are using Nationwide.

Definitely let your solicitor know about where the deposit is coming from. My husband told his solicitor right at the start. The mortgage broker also knew from day 1.

secla

We had to supply a gift declaration form for mortgage application but our conveyancer has only just asked for proof of deposit 6 months into buying process when everything else has completed. Dont think its normal for it to be left this late but i guess all conveyancers do things differently

Rumana03

secla said:

We had to supply a gift declaration form for mortgage application but our conveyancer has only just asked for proof of deposit 6 months into buying process when everything else has completed. Dont think its normal for it to be left this late but i guess all conveyancers do things differently

Which bank is that with? Because our conveyancer did the same thing. Literally we only have this gift deposit form that needs the banks approval and then we are ready to complete.

newsgroupmonkey_

Rumana03 said:

I had to fill in a gift deposit form for my husband's property purchase. I did this before the final mortgage offer but it now turns out that the bank have yet to check and approve the form. Not sure if this is normal or whether they are supposed to have checked the form before offering the mortgage but this is now delaying us as this is the only thing holding up completion.
I had to provide bank statements to show where the gifted deposit is coming from. They ask for 3 or 6 months bank statements.
Which bank is it? We are using Nationwide.

Definitely let your solicitor know about where the deposit is coming from. My husband told his solicitor right at the start. The mortgage broker also knew from day 1.

I'm surprised the bank want it.

My mortgage company weren't interested once I had the DIP. Provided the Solicitors (they do the gift checks) do their thing on behalf of the mortgage co, everyone's happy.

I guess we were fortunate first time round. We had some of our own money and the bit my folks topped up was already in our account.

Be aware, there's usually a charge by the solicitor to do the gift checks - it's actually quite a bit of work they have to do (check where the funding came from and ID checks)

secla

Rumana03 said:

Which bank is that with? Because our conveyancer did the same thing. Literally we only have this gift deposit form that needs the banks approval and then we are ready to complete.

Nationwide

user1977

Solicitors should be asking for a paper trail for the funds all the way through to the money hitting their account - so it makes sense for them to get that when it actually happens i.e. immediately before completion, rather than get some evidence early on and then come back for the remaining statements etc.

theartfullodger

Unlike your good selves, there are, sorry to shock you, people who lie, exaggerate, manipulate.

You've either got "proof" (eg bank statement) or not.. 

Rumana03

secla said:

Rumana03 said:

Which bank is that with? Because our conveyancer did the same thing. Literally we only have this gift deposit form that needs the banks approval and then we are ready to complete.

Nationwide

Oh we are with Nationwide too...this must be the normal thing for them then. They must ask for the deposit form at the end

eddddy

Yorkshiregirl1986 said:

At what point is the proof of deposit required?

In simple terms, when you get an offer accepted - you have to convince the estate agent that you're not a 'time waster', who doesn't have the money to buy the property.

The easiest way to convince the estate agent is by showing them a mortgage AIP, and a bank statement showing the deposit money in the bank.

You don't have a bank statement showing your deposit - so you need to think what documents you can provide that will make the estate agent comfortable that you really will have the money, and you're not a time-waster.  e.g. A letter from a solicitor might be helpful.



To be brutally honest, if I was an estate agent, and you said to me...

"My father-in-law is selling a property to my brother-in-law, and then my father-in-law is going to give some money to me as part of my deposit... etc, etc"

I might not be very comfortable with that story....

....unless perhaps it was supported by a letter from a solicitor confirming that the sale is progressing, and perhaps a letter from the father-in-law confirming the proposed gift, etc.