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Proof of deposit - Mortgage

Hi All,

I am currently in the process of buying my first house,

I have been told that I will soon have to supply proof of my deposit, I think this is to the solicitors.

I am just wondering, why do they need this proof? Also, will I just need to supply a bank statement showing the money in my account?

Thank you,

Lou
«13

Comments

  • G_M
    G_M Posts: 51,977
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    Who has asked for the proof? The estate agent? Your mortgage provider? Your solicitor?

    Whichever, it is not unreasonable for them to want to know
    a) you can genuinly proceed with the purchase and
    b) you are not a drug trafficer laundering your ill-gotton gains

    Bank statement will probobly do. may need to show where it came from (2000 deposits of £20 each in cash may raise eyebrows, as would a large deposit from Venezuela)
  • Radiantsoul
    Radiantsoul Posts: 2,096
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    Yeah that will be fine.
  • jenny_13
    jenny_13 Posts: 159 Forumite
    You normally need to show where the money has been for the last 3 months. If it's coming from different sources you'll need to provide statements for each of them.
  • Most of the money has been borrowed in a loan. My mortgage advisor knows I have the loan and what the monthly payments are, my mortgage has all gone through fine.

    Are the solicitors going to have a problem with this?
  • jenny_13
    jenny_13 Posts: 159 Forumite
    Do you mortgage company not have a problem? Normally they won't lend to you if the deposit comes from a loan as you need to pay that back as well as the mortgage.

    I don't think the solicitors will have a problem as long as you show the correct documents.
  • getmore4less
    getmore4less Posts: 46,882
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    jenny_13 wrote: »
    Do you mortgage company not have a problem? Normally they won't lend to you if the deposit comes from a loan as you need to pay that back as well as the mortgage.

    I don't think the solicitors will have a problem as long as you show the correct documents.

    If you have any other debt then whatever deposit you have is no different to a loan. (net position is the same)
  • If you have any other debt then whatever deposit you have is no different to a loan. (net position is the same)

    sorry, I'm all new to this, what does this mean?
  • MarkyMarkD
    MarkyMarkD Posts: 9,912
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    The point isn't whether the mortgage adviser knows about the loan. The point is whether the mortgage application included you fully disclosing the loan.
  • Fire_Fox
    Fire_Fox Posts: 26,026
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    louiserer wrote: »
    Most of the money has been borrowed in a loan. My mortgage advisor knows I have the loan and what the monthly payments are, my mortgage has all gone through fine.

    Are the solicitors going to have a problem with this?

    Very few lenders will accept a loaned deposit, are you sure this has been declared to the lender properly?
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
  • A loan should be declared....would show on a credit check anyway...however depends what the loan was for initially for it to raise a mortgage companies eyebrows. A friend of mine borrowed about 20k for a new car.....bought it, but still had his original car which was worth a similar amount which he sold. No fraud there but nearly 20k in the bank for a deposit. Fine if affordable
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