mortgage savings

user37

Hi, i am hoping to apply for a mortage shortly and i lended my sister 12k years ago which she has now saved up to give back to me and i will be using this as saving for my mortgage application.
i have also another savings account which i put money in on a monthly basis.
My question is - is it ok to lodge this money into the credit union or wil questions be asked........?
Would it have to be in the credit union a certian lenght of time b4 i can apply yo the banks?
i need it to help my application!
thanks:)

user37

can anyone help me

seamus

It's not an issue. The bank will ask what kind of savings you have and where it came from. You just tell them that it's savings you've built up over the years.

Sometimes they ask for statements, if they query the sudden appearance of €12k you can explain that it was a loan repaid by your sister. In some circumstances, they may request a latter from your sister confirming that it was a repayment of a loan by her and not a loan given to you by her, but probably not.

Stick the money in the credit union and ask the credit union for an account statement and that'll be it.

Go with a mortgage broker (don't pay them any fees!) and explain to them the story with the money and they will can tell you whether it matters. It won't be an issue once the bank are happy that it's your money.

user37

thanks Seamus, that sounds straight forward

Daisy123din

Im currently in the process of trying to drag a mortgage kicking and screaming out of the banks and i had an issue like this. one bank refused to deal with me at all because of this issue. quote: cash gifts are not an exceptable as part of your savings for deposit.as i had explained this was not a gift to me it was like your situation a loan repayed. what i was asked for was a statement from way back showing how i saved this amount to be able to lend it in the first place. no letter from your sister explaining this will be excepted. you need to have a statement backing you up. if you dont have a statement..... change your story...the banks will pick at the tiniest detail these days nothing is straight forward and they all seem to have there own set of rules that they can pull out of nowhere. i hope you get thru the process easier than i have. its been very .... frustrating.

themoneyguy

I think you will be fine.
All the bank really want to know is whether the funds were borrowed from a different source and therefore affecting your repayment capacity to pay the sanctioned mortgage repayments.

If it is lodged as a lump sum they may seek an explanation. Upon hearing your story they may request a letter from your sister confirming it is a non refundable gift/repayment of a previous loan.

Gifts happen from parents to kids all the time and are accepted by the banks.

Honesty is always the best policy when looking for finance

user37

Daisy123din wrote: »

Im currently in the process of trying to drag a mortgage kicking and screaming out of the banks and i had an issue like this. one bank refused to deal with me at all because of this issue. quote: cash gifts are not an exceptable as part of your savings for deposit.as i had explained this was not a gift to me it was like your situation a loan repayed. what i was asked for was a statement from way back showing how i saved this amount to be able to lend it in the first place. no letter from your sister explaining this will be excepted. you need to have a statement backing you up. if you dont have a statement..... change your story...the banks will pick at the tiniest detail these days nothing is straight forward and they all seem to have there own set of rules that they can pull out of nowhere. i hope you get thru the process easier than i have. its been very .... frustrating.

Now you have me very worried.Did you get the morgage in the end???? i dont have antthing to back it up i.e statements as it was taken 4m my current account in small amounts through the years.
Would i be better waiting 6 mths or so to apply do you think although i wud rather now

Daisy123din

replied to by IM

Little Bubbles

user37 wrote:

Hi, i am hoping to apply for a mortage shortly and i lended my sister 12k years ago which she has now saved up to give back to me and i will be using this as saving for my mortgage application. i have also another savings account which i put money in on a monthly basis. My question is - is it ok to lodge this money into the credit union or wil questions be asked........? Would it have to be in the credit union a certian lenght of time b4 i can apply yo the banks? i need it to help my application! thanks

How did you get on in this situation. I have a sililar problem. Only 7k I leant and got it back in 5k and 2k installments

Trish56

Little Bubbles this should not be a huge issue with your lender. You will be asked to submit 6 months recent current and savings statements. If the 5k and 2k transactions (lodgements) are shown in your accounts over the last 6 months you more than likely will be asked where the money came from. You could be asked to provide a statement showing where you paid out the 7k to your sister. If the 5k and 2k lodgements are not shown in your last 6 months statements I don't believe it will be an issue.

Little Bubbles wrote: »

How did you get on in this situation. I have a sililar problem. Only 7k I leant and got it back in 5k and 2k installments