Proof of deposit

LillyJ

Hi everyone, first post!

I am buying a house, with 10% deposit, and was just wondering, will they want to see bank statements, and do they mean the one with the deposit in, or your current account?

It is just that, at present I am in my (interest free - so no lectures please) overdraft, by £1600. We will be getting deposit paid by parents, and we can just make it to 10% deposit as well as pay the solicitors fees and the survey.

However, I will still be £1600 in my overdraft. The mortgage company know this (they are also my bank - again don't worry, I went through a broker), and we have had a change in circumstance so I will be soon in credit. (the month we complete).

I will definately be able to afford mortgage, that isn't the issue, and the overdraft will be gone pretty soon, but it is a temporary cashflow problem.

The question is, will the mortgage people accept the fact that I will look like I am about £600 quid short on the deposit when they look at my bank statement, or can I put the 10% deposit (plus extra for solicitors fees) in another account and show them that.

I do not want to defraud them, and I imagine they will know anyway, but just to avoid confusion?

I guess what I am asking is can you use overdraft to pay a part of the deposit (about £600 worth)

Thanks

LillyJ

I forgot to add, I am buying with my partner, and we are actually paying 5% each deposit and half on all fees etc. He is getting his deposit paid by parents as well.

PS we have already had offer accepted and survey done so please, I do not need a lot of posts saying "now isn't the best time to buy" etc. Thanks

Doozergirl

They don't ask to see proof of the deposit.

I assume that all the proof they need is in the fact that if you don't have the deposit, you won't be buying the house. Your solicitor will collect your deposit and then enable you to proceed with exchange/completion.

LillyJ

Oh thank you for that, like I said I will have more money the month after we complete so I am not worried about that.
I will definately have enough cash to pay the deposit. Do they not ask for bank statements at all? I suppose they can just access mine as they are my bank!

I know we have to show proof of income which isn't a problem but not sure what else they ask for? I just want to make sure we have all the documents handy so as to not hold up the process.

One more thing if we have an AIP and have paid for the valuation, will changes in the bank's rates affect us before we have signed on the dotted line so to speak, or have we secured that rate? Sorry if this is the wrong board.

Doozergirl

Proof of income, proof of ID, proof of address. Can't think of anything else.

Even if you did need proof of deposit, it's fine to be given a deposit as a gift; your solicitor will ask anyhow. I assume you can actually provide proof of the deposit if it were required!

LillyJ

Ok that's brilliant thanks. We had been collecting payslips ready to show them anyway.(normally get stacked up at work!)

Yes if needed we could show proof of deposit, was just worried how it would work with me being slightly in overdraft.

I cannot use the money to pay off overdraft, as the money was given on the basis that it was used for a house deposit. It is not in my account yet but it will be on request, just a couple of days for money to clear.

Thanks for your help Doozergirl.