Proof Of Deposit Source

So I''m a FTB with a 5% deposit, we've got a DIP (eventually) found a house, had offer accepted, just waiting to complete full mortgage application on Tuesday.Shortly after putting in an offer on the house and having it accepted, I thought it would be a good idea to put the cash I had saved (from birthdays, christmas, easter etc) into my savings account, as this value made up my mortgage deposit to the 5% with a little extra for the costs etc. I put £1300 into the 'save to buy' account (I'm with nationwide) and the other £700 into my current account, to be used for brokers fee etc. I'm now having a minor panic as to how I'm going to prove the source of these funds (in retrospect, I should have just gotten off my lazy bottom and paid them into the bank as I recieved them, but I have a safe at home and didn't see any reason not to use it at the time); my mortgage broker has my savings pass book and hasn't batted an eyelid at the recent large deposit, the only thing thats rung alarm bells is the detail the solicitor is requesting. I have sent them an email to make them aware of where some of the deposit has come from, but they're out of office, so I suppose I'm looking for some peace of mind!I also don't yet have the full amount needed for solicitors fees upon completion sat in my account, I am budgeting for them as the come up and have calculated that with my next pay (3rd June), my bonus from work that's coming in June and the 'cashback' the mortgage we've applied for comes with, I'll have more than enough to cover the fees on completion....will this pose an issue? Do I need to prove that I already have this?

Any help and advice is welcomed!

1 Answers

Some lawyers are fussier than others when it comes to "source of funds" evidence so luck may play a part. Essentially the lawyer's duty is to ask a question and obtain a reasonable, plausible answer. If they receive such an answer then they need not investigate further unless something else gives them grounds for suspicion. So as far as the £1300 goes you should be fine as long as you don't have one of the few over cautious firms acting for you. The important thing is is to be honest and upfront with the facts - as a conveyancer, the thing that causes me most problems with the issue of investigating source of funds is when perfectly innocent clients lie or withhold information because they think I am prying or they think they will be making things easier for themselves.

As to to the money you don't yet have, it should be fine for you to present the evidence when you have it (in this case I suppose your wage slip). The cash back might be a problem. These payments are sometimes sent after completion and are sometimes sent direct to the borrower so conveyancers won't always factor them in to the calculations when working out how much they need to complete.