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Any mortgage people or financial advisers around? Quick question....

4 replies

PeachesMcLean · 26/04/2007 19:29

Now I know we need to talk to our financial adviser about this, and that the answer would probably depend on which mortgage provider we're going to.... BUT generally speaking:

We're about to put our house on the market and might hope to put an offer in on something else within the next month or so. We'd like to look at getting an agreement in principle before starting, but failing that could certainly be applying for a mortgage in a few weeks.

We're in the very fortunate position of being given a substantial lump sum from my mum, which will go towards the house. She suspects this could take two or three months to materialise, ie to cash in her investments. Does the money actually need to be in our account before applying for the mortgage? Would lenders take some other form of evidence that we're about to have it?

I'll call in and talk to our mortgage man tomorrow but this has just come to light and we'd like to have some idea this evening if we're going to have to wait another couple of months untill it's sorted. Thanks in advance...

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milge · 26/04/2007 19:31

No - lenders would only ask for proof of deposit if the mortgage wasn't watertight or was going beyond their normal lending criteria. they can always write toyour mum's IFA or bank to confirm investments are held/have been sold, if they are that worried. hth

PeachesMcLean · 26/04/2007 19:38

Writing to the IFA / bank sounds jolly sensible to me, thanks milge. Good to hear they might do that.

What do you mean though by a mortgage being watertight? (sorry if that's a dim question)

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milge · 26/04/2007 20:03

If affordabilty was based on mainly on bonus/commission/there were a few existing unsecured debts/poor credit rating/
ie, if you earn £50K, and only want to borrow £100K, they won't want to know where the deposit comes from
If you earn £50K, but basic is £10K, the rest bonus, and want to borrow £200K, they may ask for proof of deposit. hth

PeachesMcLean · 26/04/2007 21:06

Thanks milge. That's good to know.

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