Proof of deposit (another one)

jonnybravo147

Hi, I'm FTB with a very large deposit as I'm over 50 and saved my whole life, so looking at 30% LTV.

Just realised I'll need proof of deposit. The funds are spread over several savings accounts. Most are held for 1 year or less as I constantly chase the best rates.

I don't have statements for each account, showing deposits from monthly wages and where the initial large deposit came from.

Will I have trouble getting a mortgage? 

Thanks in advance

Jemma01

Can't talk about your situation, nor what the standard checks are, but my own experience was that they never asked me where my money came from in my savings account (EA didn't ask, HSBC didn't, my solicitor didn't). The only input statement they could see from my bank statement was an hmrc refund. Like you my ltv was low. Savings account is with Halifax, so HSBC had no means to know the source of the money. The only thing I can think of is that HSBC saw my income and decided the savings made sense 🤔

I don't know if you having too many accounts will trigger the question, as I only had one. I'd imagine you'll need a bank statement that shows how much money you have in the account.

jonnybravo147

Yes, I've read banks have different procedures. I'm downloading statements now but some app accounts don't have them. I'll look at consolidating my savings into a few accounts, banks should understand the 85k FSCS limit means I'm using more than one account

Mr.Generous

As a landlord and property developer (bought wrecks, did 'em up and sold 'em) I have only once had any hassle about funds. That was from TSB bank - I moved Business Bank acount to get zero fees when I could. No other bank or the solicitor ever asked. That was resolved with just a phone conversation, so unless it's tightened up not really something to worry about. I didn't use mortgages, savings and redundancy pay got me started then profits from each renovation funded the future purchases.

Last purchase was 2023.

ACG

I think a lot depends on what the 70% represents. 
If it is £500k, you can probably expect more checks than if it is £50k. 
Likewise a lot will depend on whether it makes sense, I once had someone tell me they had £120k on a £20k income, when I asked where it came from they became defensive. 

That deposit could have made a lot of sense (if inheritance) or no sense if savings. 

Some lenders do more checks than others and the same can be said for solicitors. In short though, the details will make the difference. 

jonnybravo147

250k on 43k, salary generally above average. No big expenses like car, kids, etc.

Hoenir

jonnybravo147 said:

 banks should understand the 85k FSCS limit means I'm using more than one account

Banks are the front line defence against money laundering. Be no rule bending. No worth the penalties to take any risk with regards to customers. Not as if evidence of the source of money is new. Onus has been on the individual to maintain records to provide proof. .

MWT

jonnybravo147 said:

... banks should understand the 85k FSCS limit means I'm using more than one account

That isn't a problem, multiple accounts for a large deposit are not unusual.

jonnybravo147 said:

I don't have statements for each account, showing deposits from monthly wages and where the initial large deposit came from.

This may be a problem, as it sounds like you do not have enough documentation to show the steady building of this deposit over many years...

jonnybravo147 said:

250k on 43k, salary generally above average. No big expenses like car, kids, etc.

Nearly 6x your current annual income is likely to require some more detailed support I suspect, but you will not know until you ask your solicitor as they are the ones on the hook for the money laundering aspect of this...

jonnybravo147

I guess all I can do is download as many statements as I can, and see what paper statements I have. 

Thanks for the replies

Jemma01

jonnybravo147 said:

I guess all I can do is download as many statements as I can, and see what paper statements I have. 

Thanks for the replies

Don't give them more than they ask for. All you need for now is to prove that the total deposit is in the savings account. You don't need to worry about the full statements, just get one statement from each account that shows the total. You can request one from each bank if their online service doesn't provide one.
If they ask you for more details per bank, then you can go ahead and bring out more evidence, meanwhile, your data should only be shared subject to "need to know", so if they need it, they'll ask for it.

Hoenir

Jemma01 said:

jonnybravo147 said:

I guess all I can do is download as many statements as I can, and see what paper statements I have. 

Thanks for the replies

Don't give them more than they ask for. 

 £250k will require substantial verification. Better to be co-operative than raise suspicions. Lenders aren't desperate for new business.