Pots and Mortgage Proof of Deposit

[Allydoc (Alastair)]

Chris and Sophie at Monzo support have generated a custom pots statement so it looks like I’m sorted.

[jonnybiscuits (Andy Roberts)]

@Allydoc

I hold the deposit for my new home in a pot as part of my Monzo account. I regularly transfer funds between my account and the pot. The problem I have is with my mortgage broker who has rejected my Monzo statements as proof of deposit with the following:

“Please provide at least 3 months statements for deposit account. Please provide statements for ‘savings pot’ account to show transfers between accounts”

I have repeatedly told them that the pot is ‘virtual’ but they still insist that they have a statement from the ‘pot account’ as well as the regular Monzo account statement I’ve already sent them. This is despite the fact that I’ve explained to them the concept of pots and even sent them a link explaining how pots work.

I had exactly this problem. All credit to the Monzo guys - they turned round getting me a savings pot statement pretty quickly (asked at 8pm, received at 2.30pm the next day - I did chase once, but I don’t know if that sped it up or not).

I think it’s partly a problem with using a mortgage broker - they seem to stick to rigid rules and try to anticipate potential problems from the mortgage provider - if you’re dealing directly with the mortgage provider, they can apply more flexibility/common sense.

[Allydoc (Alastair)]

I did get the mortgage in the end. The issue is FCA rules with regards to money laundering. The source of the funds has to be accounted for, so they need to know the source and destination of funds being transferred. This causes issues in respect of pots.

[James_Tottle (James T)]

Merry Christmas people

I’m hoping to get my first mortgage in 2020 and Monzo is my main bank account (still have an old nationwide open too).

I understand that I’ll need to provide several months of statements to any mortgage provider for proof of funds… My worry is that, because I use about 10 pots (credit card, stag-do’s, bills…) with various scheduled payments including a weekly ‘allowance’ and round-ups, my account feed will probably looks an absolute mess to anyone sifting through, particularly as the bulk of my money is spread across multiple pots rather than just one ‘savings’ pot…

I see above that Monzo will provide ad-hoc Savings Pots statements on request but am I best off playing it safe and deleting my pots to get my feed straightened out? Probably overthinking it but would be interested to hear of similar cases.

Would love an insight into Monzo’s progress on the mortgage front also… Though as they’re not ‘Coming Soon’ I expect it won’t be relevant for me personally.

Thanks

[SammyP]

Just send a statement, see what they say.

And about mortgages, Christ dude, do you not realise the size of Monzo? It’s a small bank, there’s no way they can provide mortgages any time soon.

[Rat_au_van (Em)]

They were looking into working with a company that doers remortgages.

Not sure how far that got

[James_Tottle (James T)]

Hi Sammy thanks for reply.

I don’t actually expect Monzo themselves to offer mortgages, I’d envision a partner service akin to what they do for savings pots where Monzo acts as intermediary.

I won’t be applying for several months so ideally won’t just ‘send a statement and see what they say’ -if multiple pots is an issue I’d rather hear similar user experiences and sanitise my transaction feed over the course of this time as necessary.

[Sam87]

We bought our house with Monzo as our main account. We have about 10 pots in the joint account and I have a similar number in my sole account. It wasn’t a problem at all. I would stick to what you are doing.

[James_Tottle (James T)]

Thanks that’s really good to know. I’m guessing you had to provide some Monzo statements so presumably the mortgage broker/provider weren’t confused by the pots etc but holla if you have any words of advice (e.g. whether you had to get a statement from Monzo for the Pots themselves) .

[Sam87]

We didn’t have to get any statements for pots, but then we kept our deposit savings in Marcus. My husband dealt with most of the mortgage application, I will ask him about it.

[anon99402360]

I’ve just completed my remortgage. YBS didn’t care about the statement and didn’t ask any questions about it. Seemed like it was only there to confirm amount of salary going in.

[davidwalton (Award Winning Hot Coral Analyst)]

Monzo beta’d a collaboration with Mojo mortgages in July. I applied for a remortgage but couldn’t do it ‘in-app’ because it was only working with Personal Accounts and I/we primarily use a Monzo Joint Account.

So I went directly with Mojo mortgages instead of through Monzo and got a great remortgage deal. No issue at all submitting the Monzo statements and as @anon99402360 says, it seemed like they only needed them as proof of a salary being deposited into the account.

But just like Points and Plus - such an in-app Mortgage offering was never fully offered

[Chapuys (Kevyn)]

When I mortgaged with Atom, through Habito, last February they were not interested in statements, rather the full amount and my salary.

It was the solicitors who got forensic with where my deposit money came from and where you will probably need the statements showing the money paper trail. Again, depends on the solicitors on how in depth they want.

[anon99402360]

@davidwalton

Monzo beta’d a collaboration with Mojo mortgages in July. I applied for a remortgage but couldn’t do it ‘in-app’

You couldn’t do any of it through the app. I tested it. Was pretty much a link. All three services tested pushed decent products, but I got a better deal staying put.

Worryingly, the advisor from Habito didn’t listen, he seemed hell bent on pushing me to NatWest he missed half of the information I told him.

[jonnybiscuits (Andy Roberts)]

They’re looking at a number of things in your account. The key ones relevant to this conversation are:

1. evidence of salary going in and that it matches your payslips
2. proof that you have sufficient cash for your deposit (and where you got that cash from to make sure you’re not buying the house to launder money).

For point 1), your pots situation shouldn’t be an issue.

For point 2) it could be an issue if your deposit money is spread over lots of pots. If that’s the case I’d suggest consolidating it into one pot now - if you do this, you’ll probably need to get Monzo to do an itemised statement for the pot that contains your deposit money. They did this for me twice pretty quickly through the in-app chat. If none of the money in your various pots will be contributing to the deposit, then it doesn’t matter that you have lots of pots.

From the conversations I’ve had, it seems that people who applied directly through the mortgage provider didn’t need to get the itemised pot statement because the provider understood Monzo’s statement and could exercise discretion and common sense. If you’re going through a mortgage adviser, they have to anticipate all various questions all varieties of different providers might ask and hence will take a belt and braces approach and ask for as much evidence as humanly possible to cover all eventualities.

Hope that makes some sense. In short, get your deposit money into one pot and request an itemised statement for the pot from Monzo (as close to the time you’re applying as possible), and you should be fine.

Good luck.