mortgage cash deposit???

[helpsneeded]

My granddad gave me £12000 for a cash deposit and he has saved this cash for several years.
The solicitor/lender wants proof of funds.
How do I prove this?
I am so frustrated by this all. Some please help!!!!!!???

 

[Sparx]

Print a bank statement where the funds are held showing the balance? And if the transfer wasn't recent, you could also print the statement showing the transfer into your account. Just make sure it has your name, the account number and sort code on...

 

[helpsneeded]

That's what I thought, until I found out that they wanted the proof of where the funds actually came from. The funds did not come from my grandfathers account, he had business 27 years ago and he still keeps cash. He is very old school and due to this, my mortgage application is looking sour, very sour.

 

[Sparx]

I'm not sure why your bank statement showing the transfer is not sufficient enough...

How did the transfer happen? Did your granddad give you the money in cash, then you deposited the funds into your own bank account? If yes, did your bank not ask you any questions (AML related) at the time of deposit? I.e. source of funds.

Has your solicitor / lender actually stated what proof you can obtain in your scenario? The best solicitors usually try help you, rather than leave you to decipher cryptic requests from the lender!

 

[Will_Authentic_Style]

Yeah this should be easy. You just print out your bank statement(s) to take to the mortgage advisor. They'll then calculate whether your deposit amount is going to work for the level of loan you require.

Good luck!

 

[helpsneeded]

The solicitor wants proof of accumulation of funds?????

 

[helpsneeded]

My granddad gave me money in cash @Sparx bank did not question the funds when paying in

 

[Sparx]

I would simply go back to your solicitor, explain the situation as you have here, then ask they clarify what detail you can possibly provide... It's what you are paying him for, to assist you proceed, not play messenger for the lender...

 

[MOIC]

You cannot just create a wad of cash from someone, family or otherwise.

All cash, especially for mortgage payments has to be verified as to the source, it is legal and is not subject to illicit earnings.

These controls have been put in place for obvious reasons.

It's not for the solicitor to find the reason, rather than for the OP and his grandfather.

Old school methods of saving cash is fine, until such time it has to be used in the 'open'.

The grandfather needs to show how the cash was accumulated and that it was subject to any taxes due at the time.

These procedures are to prevent money laundering and mortgage lenders' role in this is to ask the questions and get the answers from the borrowers. Failing to do so, will cause problems for both parties.

 

[helpsneeded]

Lets see how this one pans out!

 

[MOIC]

Provide the information that is required, then I can see no problems.

 

[swankypants69]

Tell them you've just sold your car

 

[tony84]

Is this the lenders requirements or the solicitors?
If its the solicitors find a new one.
If its the lender...find a new one.

Some lenders/solicitors want evidence for AML - evdience can vary from a letter from the donor (your grandfather) through to bank statements showing an accumulation.

Where there are gifted deposits its never a bad idea to ring the lender before applying and asking what evidence they would need - if you can meet their criteria, great. If not then you need a different lender.

 

[Pish_Pash]

Isn't it ironic that lots (& I mean LOTS) of foreigners seem to easily be able to buy luxury homes (http://www.bbc.co.uk/news/uk-politics-33684098), yet someone in the UK, is having trouble justifying a modest amount of dosh to the solicitor/lender (perhaps an offshore shell company is needed?!!)

 

[tony84]

It depends...
The poster on this thread wants someone elses money to purchase a property.
A foreigner may have their own money or already secured the finance to allow them to purchase.

At this stage we do not know if its the solicitor or lender causing these issues.

 

[Pish_Pash]

Apologies, I messed the salient bit in my last ...lots of foreigners are able to buy luxury properties in London using dirty money (http://www.bbc.co.uk/news/uk-politics-33684098), but yet again, the average man in the average UK street has to jump through all manner of hoops (I mean £12k - it's hardly Breaking Bad is it?)

 

[swankypants69]

Provide the information that is required, then I can see no problems.

I think this is the crux of the issue

Even if the cash has been relatively legitimately saved and stashed, over a long period of time, it's going to be almost impossible to prove that it has come from declared earnings!

 

[tony84]

Do that 10 times over and you have just "cleaned" £120k - all becuase people thought £12k was not worth checking.

Im not saying I disagree, but the average man in the street can not just pull £12k from a mattress. So if the average man can not do it, then its out of the ordinary, if its out of the ordinary then it needs to be checked.

Foreigners being able to use dirty money to buy luxury houses does not mean the aveage man should be able to buy an average house with dirty money.

I will be completely honest and I have reported a handful of people over the years, I have no idea what happened to any of them but if I suspect and do not report, I risk losing my livelihood. I have worked hard to get to where I am and sacrificed a lot over the last 3-4 years so that is a risk I am not prepared to take. I imagine solciitors are the same (if not more so), I do not blame them.

But at the same time as I have said, different lenders and solicitors have different views. So what one thinks is not acceptable another will be fine with. Like anything in life, it is all about finding the right way.

 

[Pish_Pash]

I wasn't suggesting checks shouldn't be made, but just pointing out continuation of the norm i.e. ...foreigner with £x,xxx,xxx of 'dirty' money ...luxury London pad purchased (without issue), UK 'man in the street' with a modest amount of cash = struggling to get lenders onboard (same with Ebay etc. ......Chinese sellers ducking VAT to the tune of billions - HMRC not involved, whereas a bloke selling as a sideline to keep a roof over his head - investigated!). It pays not to be a Brit doing anything in Britain.

 

[tony84]

But again... The issues could be lender related.
If they are then the foreigners would be having the same problems.
You are comparing apples and oranges. If someone is buying for cash then they do not have the lenders hoops to jump through, if they are buying using a mortgage then they do.

No point getting on to ebay and foreign sellers as we could go off on one talking about politics, the wider economy and all the rest of it.

 

[MOIC]

All solicitors and UK mortgage lenders must satisfy themselves that any money being used for deposits or payment in full for purchase of properties BY CASH has been verified correctly and is accounted for legally.

Don't blame the lenders.

Don't blame the solicitors.

It's a legal requirement.

@Pish_Pash you are surely referring to the thousands of Brits that have bought property in Spain that used (allegedly) "dirty money" to buy their properties.

Not to mention the amount of Brits using "dirty money" to buy products and businesses abroad.

You seem to imply that it's just a "foreigner" problem and that all Brits are whiter than white with their property and business dealings.

You couldn't be further from the truth.

 

[MASSEY]

When i first read the thread i thought he gave you 120,000 haha,

I am very surprised such a small sum of money has raised this issue. Are you dealing with jobsworths? I could understand them maybe getting worried over something like 40k....

According the profile of the op they are 29, it doesn't take much to save up 12,000 over a 29 year olds working career. Maybe it would have been best to say you had saved it yourself rather than bringing a third party into it?

 

[Pish_Pash]

you are surely referring to the thousands of Brits that have bought property in Spain that used (allegedly) "dirty money" to buy their properties.

Not to mention the amount of Brits using "dirty money" to buy products and businesses abroad.

That's for the Spanish to solve...& frankly Julio Iglesias can sort that out for all I care (I live in the UK, so I have a close interest in house prices being driven up by foreign dirty money). It's not a judgement on foreigners, it's a judgement of how the UK Government are fixated on shafting the indigenous (or making them jump through hoops)...whereas if you are Johnny Foreigner...on the face of it, you can run circles round the authorities (not that they even care)

 

[David Griffiths]

All solicitors and UK mortgage lenders must satisfy themselves that any money being used for deposits or payment in full for purchase of properties BY CASH has been verified correctly and is accounted for legally.

Don't blame the lenders.

Don't blame the solicitors.

It's a legal requirement.

I would blame the solicitors. There is a requirement that "high value dealers" register with HMRC. They define that as being willing to accept over £15,000 in cash.

That begs the question as to why they are making such an issue over £12k. Moreover, the OP didn't give them £12k in cash - it's been stated that it had been paid into their bank account, and the bank didn't raise any query.

 

[MOIC]

I would blame the solicitors. There is a requirement that "high value dealers" register with HMRC. They define that as being willing to accept over £15,000 in cash.

That begs the question as to why they are making such an issue over £12k. Moreover, the OP didn't give them £12k in cash - it's been stated that it had been paid into their bank account, and the bank didn't raise any query.

It's for the lender to be satisfied and that they have done their own due diligence.

To be honest, without knowing the full facts, we are just stabbing in the dark.

There may well be flags raised with this application.

 

[MOIC]

That's for the Spanish to solve...& frankly Julio Iglesias can sort that out for all I care (I live in the UK, so I have a close interest in house prices being driven up by foreign dirty money). It's not a judgement on foreigners, it's a judgement of how the UK Government are fixated on shafting the indigenous (or making them jump through hoops)...whereas if you are Johnny Foreigner...on the face of it, you can run circles round the authorities (not that they even care)

That's politics, not legal requirements to substantiate a wad of cash being introduced for a mortgae application.

Just to add, what happens in the UK, happens all over the world and from all nationalities. It's a 2 way street.

Yep, I know.................you are just interested on what happens in the UK, but not what UK citizens get up to abroad.