Proof of deposit

Rosysmudge

Hi

My dad is providing a deposit for my brothers mortgage from his savings. His mortgage has been approved by the lender.  

I recently took out a loan we and deposited in my Dads savings account while waiting to use it (higher interest rate). He paid it back to me out of his account at the beginning of the month when I needed it.  

My question is will this affect the my brothers check for proof of deposit? I have prepared the conveyancing solicitor all documentation relating to the source of the loan noting that no part of that loan is being used for the deposit and was not taken out for this purpose. My dad had plenty of savings to cover the mortgage deposit before and after my loan went in and out of his account and we have bank statements showing how this has been accrued. 

He has also completed all the paperwork including the gifted deposit letter confirming the mortgage deposit is not a loan and does not need to be paid back.

Worrying myself sick that this will affect AML checks and derail my brothers mortgage. We had no idea about proof of deposit checks before now or else I wouldn’t have asked my Dad to put my loan in the savings pot. 

Any reassurance appreciated. 

ACG

If your dad is gifting say £20k and there was £20k in there before the loan hit and after the loan was repaid then I cant really see there being a problem - the money was always there regardless of the loan. 

If your dad is gifting £20k and only have £10k and then the loan took it over, then there could be a problem. 

It really depends on the solicitor and the amount of money involved. If your dad is gifting £5k, the checks are going to be a lot less than if he is gifting £205k. Only your conveyancer can answer the question though. 

Rosysmudge

Thanks. I think it will be fine. He had over 30k in there before the loan hit and the same after it went out and we can prove the source of the loan and it going in and out to my account. He’s gifting £18k. So annoyed with myself! 

housebuyer143

It will be fine. My mum gave me a gift of £30k. She had her pension from Oz put in there at some point but threw all the paperwork away so the solicitor discounted that amount from her savings as she couldn't verify its source.

Luckily my mum had the £30k from savings without the pension payment so that was accepted.

amnblog

In the unlikely event it is questioned, it can all be tracked so is not an issue.

tetrarch

The POF requirement is usually 6 months. There is nothing to stop you providing proof in excess of this time period, especially if there are some unusual transfers.

I had to provide six months POF across five bank accounts. In the end I sent the statements and then I added an Excel spreadsheet to make it easier to understand

Regards

Tet