How best to describe a standing order to mortgage lender?

Pegasaurus · 13 June 2018 at 9:34AM

Hi all - and especially the ever helpful brokers on here!

We're at the final hurdle with a potential mortgage lender as we attempt to remortgage to a really good rate. Passed credit checks, looks like valuation is OK, etc. However they've been through my bank statements and are understandably querying a standing order to my parents tagged 'loan'.

What's your advice re: how to respond. If I say "it was to repay our contribution to a group family holiday and that was the final payment" it sounds a little too convenient, right? What sort of follow up/proof would they likely want? There's no documentation for the loan or anything so nothing to produce.

Thanks in advance.

[Deleted User] · 13 June 2018 at 9:36AM

Pegasaurus wrote: »

What's your advice re: how to respond. If I say "it was to repay our contribution to a group family holiday and that was the final payment" it sounds a little too convenient, right?

If that's what it is, go for it.

Pegasaurus · 13 June 2018 at 9:38AM

Thanks. Is an anecdotal response usually enough to pass muster?!

ACG · 13 June 2018 at 9:43AM

You have to tell the truth, so if that is what it is, that is what it is. All you can do is tell them what it is and see what they come back with.

Pegasaurus · 13 June 2018 at 9:44AM

Thanks. Well, it won't be on the next month's bank statement so if they need to see that, it's no problem.

marmitemum · 13 June 2018 at 6:24PM

Is that what it was for? I would advise telling the truth, keeps things simple. If that is not for what it is, and you tell a porkie, remember that they may seek comfirmation from your parents and that involves them in the porkie too.

Pegasaurus · 13 June 2018 at 7:32PM

Yep. But regardless, strikes me that only legally binding financial commitments should factor into decision making. Although I know the whole gifted deposit thing for first time buyers must be a big factor for lenders.

A_Nice_Englishman · 13 June 2018 at 7:46PM

Pegasaurus wrote: »

Thanks. Well, it won't be on the next month's bank statement so if they need to see that, it's no problem.

Is this the £22k you owed your parents last November?

Thrugelmir · 13 June 2018 at 8:34PM

Pegasaurus wrote: »

However they've been through my bank statements and are understandably querying a standing order to my parents tagged 'loan'.

Did you declare the "loan" on your application form?

Likewise before signing the form did you read the declaration that you were signing.

Pegasaurus · 13 June 2018 at 8:53PM

Englishman: no - that was covered by additional lending with my current mortgage provider (which is why I'm moving lender, to combine the sub-accounts)

Thrugelmir - no, because the remortgage isn't until August so didn't see it as relevant.

BoGoF · 13 June 2018 at 8:57PM

So will the loan be paid off by August?

How best to describe a standing order to mortgage lender?

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