Whether you’re taking a step onto the property ladder for the first time or you’re looking for a new house to call your home, you’ll more than likely need a mortgage to help you cover costs. When getting yourself a mortgage, one of the key aspects of the loan you’ll need to consider is your deposit, or more accurately, the proof of your deposit.
Perhaps contrary to popular belief, there are multiple ways you can prove your deposit, and you don’t just need your personal savings account. In today’s guide, we’re going to explore the top six forms of proof you need to know about.
Money Received as a Gift
While not massively common, you may receive money as a gift for your mortgage deposit (specifically for this purpose) from people like parents, family members, or grandparents. As long as you have a signed legal agreement that details the terms and value of the gifted agreement, you can use this money as proof of deposit.
Money from Personal Savings
Perhaps the most common form of mortgage deposit is money you have in your personal savings accounts, no matter what form this is in. You’ll need to think about proving your funds, such as keeping a couple of bank statements that prove the amount is what you have, and that the value of your account is increasing over time.
Any Inheritance Money
If you’ve received any value of inheritance in any way, this is a key way you can deposit on a mortgage, but you’ll need to secure a letter from the executor of the will proving that the money is yours and can then, therefore, be used as a mortgage deposit. You’ll also need to prove the funds are available in your account. You can check out mywealthandinvestment for more information on how inheritance works in this way, as well as any of the other forms of deposit on this list.
The Sale of Your Property
If you’re not buying a property for the first time, but you’re upgrading or moving home, then the sale of your existing property is a fantastic way to prove your deposit. This tends to be the easiest form of deposit unless the funds from the property are undercharged by another party. The only thing you need to do is prove the funds are in your bank account while you’re organizing the mortgage.
Confirmed Sales of Assets
If you’re selling assets you own for money for your deposit, as long as you have proof of sale, evidence of the value of the sale, and can prove the sales are legitimate, you’ll have no problem using this as a form of proof of deposit.
Any Captial from Another Property
If you have a large share of another property, this doesn’t have to be your home, or it could be your home, but it has instead increased in value over time, you can release this equity and use it as a mortgage deposit. You can then take out a larger mortgage that covers both properties. All you need to worry about is proving that you’ll be able to keep up with payments.
As you can see, there are plenty of forms of proof of deposits out there when it comes to mortgages, so all you need to do is gather proof that you have access to the money, no matter what form you’re using, and you’ll be able to secure a mortgage on your next property!