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Mortgage deposit - What do they need to know?

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  • 17-01-2024 6:21pm
    #1
    OctNovDec
    Registered Users Posts: 1 ✭


    Hi all,

    Looking for some advice.

    I'm applying for a mortgage but only using some of my savings for my deposit. I have around 150k but only want to use 50k as deposit. Will bank want to know where all my funds came from or just the 50k deposit? What proof do they need of your deposit? Will I have to show how every cent of the 50k was saved?

    Thanks

    Tagged:


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    #2
    Geuze
    Registered Users Posts: 13,160 ✭✭✭✭Geuze


    They may well ask how the 150k was accumulated, yes.

    They will want to see past current a/c and savings a/c statements.



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    #3
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,084 Mod ✭✭✭✭Jim2007


    It is very hard to say, because a lot depends on the lender MLA policies and each one has their own approach. If the lender is also the bank where you built up the savings then it is less likely as they will have record of how the money was accumulated and the sources. If on the other hand it is a different lender, then it is more likely you will be asked to provide details of the source of the money.



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    #4
    Q&A
    Registered Users Posts: 556 ✭✭✭Q&A


    At a minimum:

    You'll have to confirm with your lender that any money being used for a deposit is actual yours and not borrowed money. I.e., the €50k. So yes expect them to check this thoroughly.

    They'll also go back over your last 6 months+ of banking transactions from your current account(s) and any other accounts they've seen that you used in that time. They will ask you to explain all the ins and outs.

    If the €100k had been kept in a separate account to any of those accounts covered above, for the period they look at, you might not be asked. But if there is even one transaction in that period then expect then to enquire.

    Ideally if you can show you saved lots each month it will help convince them that you should be able to pay them each month. Even if they learn of the €100k it doesn't mean you will have to use it in the purchase. You can always say you're holding on to it to cover kitting it out and any other issues that night arise.

    Of course it's it's all from gambling or illegal activities it night not help your mortgage application.



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