Help! Proof of savings for home purchase - why so high?

[BecksBlue2]

We have had our offer accepted on our dream flat. Stamp duty, deposit and solicitor's fees all saved for (£30K + fees) but doesn't leave us much. Deposit and SD money is sitting in the bank ready to go. Solicitor's fee (about £1500) will be there after next pay day (15th) as we still need to top up the last few hundred quid - but that is fine as we don't have to pay our solicitor that until day before completion and we are still weeks from exchange.

Today we received an email asking for proof of savings (which I know is normal) but it stated the amount we needed to prove is £42K!!?? This is £12K OVER the total deposit and stamp duty.

Why is it so high?? Even if you factor in solicitor fee??

We just about have enough for these things with not a penny to spare, let alone a spare £10K?

Does anyone have experience of this? I am worried we will lose our flat as we can't show we have this amount....

Thank you X

Is your mortgage offer lower than you thought? What is the mortgage offer, how much is the deposit and how much is the flat?

What are the exact sums for the property? It could be a mistake of course.

Have they broken down the £42k? If not ask for a break down? Stamp duty is a fixed % so you can work that out, have they misunderstood how much deposit you want to put down.

Mortgage companies make mistakes...I was down as a 'Mr' on all the paperwork until I spotted the mistake right at the last minute (and then they withdrew their offer )

I’d ask for a breakdown, so you can see where they (or you, but hopefully not!) have miscalculated

Who Asked for proof of funds?

We are just about to exchange & included in the funds we had to pay was full conveyor fees. Isn't it the case for you? Are you 100% sure of solicitor fees too?

It was the solicitor / conveyancer asking for the proof Crow
Yes we are 100% of their fees as they have a fixed rate we have agreed. So it is a mystery but I wasn't sure if this was normal.

I will check tomorrow as sounds like they maybe made a miscalculation... I hope!!!

I hope it's an error on their part! Have you been gifted any money towards the purchase, is it that?

No gifted money - I wish! ;-)

Agent's fees.

If you've had a survey, the estimated cost of any work suggested or required.

Is the flat a new build? When I brought my first flat (new build) some mortgage companies would only give a 75% (I think) mortgage which left a shortfall in funds. Do you have s decision in principle for the full amount? If it's neither of those things I would ask for s break down from the solicitors as to how they have gone to that figure?

Won’t be agents fees as you are FTB
Hopefully they can clarify for you today!

How much deposit are you putting down? They normally ask for 10% deposit on exchange, but for our first purchase, we were not putting down 5% so it looked like we were short.

We had to have proof over the amount. They basically wanted us to have proof we had all the savings plus enough in case something went wrong- as in they didn’t want us completely wiped out and unable to afford unforeseen costs (we had extra searches and minor things to correct before sale which weren’t in the agreed amount) as well as the first few months mortgage, council tax, money to live off etc.