Question about the bank!!

I’m loaning my parents money for a mortgage for a new house and the bank has asked for a three month statement to show I have the money. The money was stored in my savings account and have transferred my money throughout the year to the savings account. So if I show them my normal account 3 month statement there won’t be any money there. Will they accept my savings account bank statement?

Reply 1

normaw

Clearing and Applications Advisor, Universities Forum Helper

19

Original post by Katie566

I’m loaning my parents money for a mortgage for a new house and the bank has asked for a three month statement to show I have the money. The money was stored in my savings account and have transferred my money throughout the year to the savings account. So if I show them my normal account 3 month statement there won’t be any money there. Will they accept my savings account bank statement?

A statment for a savings account is still a bank statement so it will be fine. They need to verify the source of the funds.

Reply 2

martin7

20

Original post by Katie566

I’m loaning my parents money for a mortgage for a new house and the bank has asked for a three month statement to show I have the money. The money was stored in my savings account and have transferred my money throughout the year to the savings account. So if I show them my normal account 3 month statement there won’t be any money there. Will they accept my savings account bank statement?

As @normaw says, the bank need to check the source of funds as part of their anti-money laundering obligations.

If you are lending your parents money, I would strongly suggest that you write up your understanding of the arrangements with your parents regarding this money -- for example, how much you're lending them and what the timescales/arrangements are for them repaying you -- and get them to sign it. This doesn't necessarily need to be a formal legal document, but it will save you a lot of hassle along the line if at some point in the future you need the money back, and your and your parents' recollections as to what was agreed differ.

If you're lending a significant amount (perhaps more than a few thousand pounds) you might want to consider getting independent legal advice as to whether you need or should have a more formal agreement. Nobody wants to think there will be problems in the future, but if your relationship with your parents breaks down and there's a lot of money involved you might be better off having something in writing.

Question about the bank!!

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