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  • FIRST POST
    • Jayak
    • By Jayak 17th May 19, 2:56 PM
    • 6Posts
    • 0Thanks
    Jayak
    Proof of Funds
    • #1
    • 17th May 19, 2:56 PM
    Proof of Funds 17th May 19 at 2:56 PM
    Hello there,

    I am in the process of buying a property. And we are buying it above the market value. hence has to pay additional amount. I got proof for the deposit. So that is not a problem. For the additional amount, my husband will be transferring amount from his bank into mine. He took personal loan from the bank. If we provide his statements and mine, will that impact our mortgage application and purchase.

    Our mortgage broker has asked proofs for deposit only, He didnot mention if he needs proof for this additional amount but solicitor wants to see.

    Looking forward to hear back from the experts.

    Cheers
    Jaya
Page 1
    • onthemend88
    • By onthemend88 17th May 19, 3:19 PM
    • 27 Posts
    • 7 Thanks
    onthemend88
    • #2
    • 17th May 19, 3:19 PM
    • #2
    • 17th May 19, 3:19 PM
    I might be wrong but I don't think that you can use the loan towards the additional amount because it will still be counted towards deposit? Hopefully someone with more experience can confirm this.
    • davidmcn
    • By davidmcn 17th May 19, 3:20 PM
    • 11,212 Posts
    • 12,404 Thanks
    davidmcn
    • #3
    • 17th May 19, 3:20 PM
    • #3
    • 17th May 19, 3:20 PM
    Are you buying it in joint names? Your mortgage lender will normally expect the whole of the equity you're providing to come from your own funds, not from another loan. Did you tell your broker that you were borrowing some of the deposit?

    Your solicitor will want to see where all the money has come from, and will be expected to report to the lender if any of it is borrowed.
    • Jayak
    • By Jayak 17th May 19, 7:01 PM
    • 6 Posts
    • 0 Thanks
    Jayak
    • #4
    • 17th May 19, 7:01 PM
    • #4
    • 17th May 19, 7:01 PM
    Thanks for your advice.

    Mortgage will be on my name alone. Can my husband mark that part of additional amount that he’s going to transfer to me as gift amount?
    • girllikeme1
    • By girllikeme1 17th May 19, 7:09 PM
    • 161 Posts
    • 42 Thanks
    girllikeme1
    • #5
    • 17th May 19, 7:09 PM
    • #5
    • 17th May 19, 7:09 PM
    Between husband and wife I believe you can gift.
    • Jayak
    • By Jayak 17th May 19, 7:26 PM
    • 6 Posts
    • 0 Thanks
    Jayak
    • #6
    • 17th May 19, 7:26 PM
    • #6
    • 17th May 19, 7:26 PM
    Thank you

    He took personal loan to suffice our need for the purchase. So if he gifts part of that money to me it will not impact my mortgage.
    • davidmcn
    • By davidmcn 17th May 19, 7:34 PM
    • 11,212 Posts
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    davidmcn
    • #7
    • 17th May 19, 7:34 PM
    • #7
    • 17th May 19, 7:34 PM
    Have you already checked with your lender that they're happy with money being gifted by your husband? Who is going to be living in the property?
    • Jayak
    • By Jayak 17th May 19, 7:46 PM
    • 6 Posts
    • 0 Thanks
    Jayak
    • #8
    • 17th May 19, 7:46 PM
    • #8
    • 17th May 19, 7:46 PM
    No, broker has asked me to provide only deposit proof but not mentioned anything regarding the additional amount we are going to pay. He said bank wants to see that I got deposit money with me. My husband will be giving 40% of the additional amount as gift as I have already secured remaining amount towards additional pay + deposit.

    My husband is happy to declare it as a gift and provide his bank statements. My only concern is since he has taken personal loan which will show up in his statement, will that impact my mortgage application? As mentioned above, it’s only me who is applying for mortgage.

    Cheers
    • justjohn
    • By justjohn 17th May 19, 8:28 PM
    • 2,071 Posts
    • 1,556 Thanks
    justjohn
    • #9
    • 17th May 19, 8:28 PM
    • #9
    • 17th May 19, 8:28 PM
    The solicitor is just making sure you are not money laundering. They just want to make sure it has come from a legit source.


    The mortgage company will not be keen on the Applicant(s) using a personal loan for a deposit/downpayment. However if the mortgage/credit check was only in your name then they should not be bothered about your "gift" from your husband.(assuming the gift/loan is only in your husbands name)
    • Jayak
    • By Jayak 17th May 19, 8:35 PM
    • 6 Posts
    • 0 Thanks
    Jayak
    Thanks a lot.

    Yes, mortgage is solely on my name and that gift amount (source personal loan) is entirely on my husband’s name

    Cheers
    • davidmcn
    • By davidmcn 17th May 19, 9:24 PM
    • 11,212 Posts
    • 12,404 Thanks
    davidmcn
    The solicitor is just making sure you are not money laundering. They just want to make sure it has come from a legit source.
    Originally posted by justjohn
    They'll also need to check on behalf of the lender that the legit source is the same legit source which the lender expects i.e. generally all from the borrower, unless they've already accepted that there'll be a gifted deposit.
    • Joewasherein2019
    • By Joewasherein2019 17th May 19, 9:48 PM
    • 22 Posts
    • 3 Thanks
    Joewasherein2019
    Our solicitor didn’t even question it.

    We had payments coming in from all over the world as we freelance globally.
    • Jayak
    • By Jayak 18th May 19, 8:54 AM
    • 6 Posts
    • 0 Thanks
    Jayak
    Thank you.

    Again as mentioned, iI am not using the gift money for the deposit. I will use it for the additional payments only.
    • davidmcn
    • By davidmcn 18th May 19, 9:11 AM
    • 11,212 Posts
    • 12,404 Thanks
    davidmcn
    Again as mentioned, iI am not using the gift money for the deposit. I will use it for the additional payments only.
    Originally posted by Jayak
    Can you clarify what you mean by "additional payments"? I thought you were meaning he is contributing part of the price of the house - in which case my comments above apply. It's all "the deposit". If you mean legal costs etc then that's a different matter.
    Last edited by davidmcn; 18-05-2019 at 9:25 AM.
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