Bank requesting historic bank statements and copy of property sale from 4 years ago for mortgage application

M

Mona G

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My partner and I have applied for a mortgage with two banks in mid January 2020.

One bank has already processed the paperwork and we have been mortgage approved with them. I have a current and a savings accounts with this bank.

The other bank however keeps asking for additional documents and now they have requested additional information on the property that I have sold in my home country 4 years ago. Money from this sale forms basis of the deposit. The bank wants to see historic statements to evidence source of funds from the sale of the property to present date. They also want a copy of the contract for the sale of the property or a solicitor’s letter confirming same. Since I have already had to provide English versions of other documents originating from my home country, I assume the bank will only accept all the above documents in English. My partner and I have a joint account with this bank.

Is this a normal practice?

I am tired of constant requests for more and more information, and since the first bank has already accepted us for a mortgage, what would be the consequences if I ignore this request and don’t provide any more information?

Your thoughts and advice will be most appreciated!

Many thanks. Mona
 
I would tell the nuisance bank that I had approval elsewhere and would not be proceeding with the application. I don't see how it would cause you any problem.
 
Have they explained why they require this information. Is it to meet their legal obligations under money laundering legislation, or for their underwriting rules ?
 
Mona G said:
@huskerdu and @RedOnion - I'm afraid that if the bank refuses our mortgage application it will show somewhere in our records and may cause problems in future.
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You made a loan application that you didn't proceed with. How could that reflect badly?

It's perfectly understandable for underwriters to ask for details on funds, particularly if you've only recently transferred the funds to Ireland. They've no way if checking that you haven't just taken out a loan in a foreign country and transferred the money here.
 
You have mortgage approval, you’re entitled to shop around, you don’t have to buy and they don’t have to sell.

Off you go the pair of you with a spring in your step and buy the home you deserve.
 
Can the Mortgage approval Bank still look for more details before drawing down the loan to complete sale , including Information on deposit funds,
 
Thank you @RedOnion, it didn't occur to me that I could take a loan in the other country. I will forward to the asking bank additional bank statement from a few years back to show dates when money were paid to me for the property and the amount paid to the estate agent. But I feel that asking for copy of the sale document is just too much.

@Figety - Thank you and I do hope your vision comes true this spring!

I am not sure @josh8267, we have had a mortgage approval in principle with them 3 years ago, shortly after the sale of the property abroad, but due to personal circumstances had to postpone house hunting. I guess they are satisfied with answers they have got then as they did not ask about it this time around at all.
 
Mona G said:
But I feel that asking for copy of the sale document is just too much.
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You think it's an invasion of your privacy?

Or you won't be able to track it down?

I am not au fait with the finer details of the money laundering legislation, but none of what they've asked for sounds unreasonable. They may be obliged to ensure that you are not a front for another person or entity abroad.
 
The Central Bank have been busy auditing most banks & financial services companies for anti-money laundering (AML) requirements over the past 18 - 24 months. Source of funds & source of wealth have been a major focus of these audits. Also as I understand not all institutions have been audited just yet.
Putting two & two together I’d imagine this is where this requirement is coming from for the second provider.
I’ve been told that the CB haven’t been much help in setting out guidelines in terms of where additional evidence is required so we are seeing quite a few variances between requirements from providers.
if the bank have asked for additional evidence of SOW it will be quite hard to get that waived.
 
NoRegretsCoyote said:
You think it's an invasion of your privacy?

Or you won't be able to track it down?

I am not au fait with the finer details of the money laundering legislation, but none of what they've asked for sounds unreasonable. They may be obliged to ensure that you are not a front for another person or entity abroad.
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It has not occurred to me that I could be suspected of any sort of money laundering involvement and yes, I perceived this request for 3+ years of statements and a copy of the property sale document as an invasion of my privacy. Also, perhaps in my naivety, I I felt slightly insulted with this lack of trust after weeks of sending to the bank all and every single piece of information they have requested.
 
Smoneen said:
The Central Bank have been busy auditing most banks & financial services companies for anti-money laundering (AML) requirements over the past 18 - 24 months. Source of funds & source of wealth have been a major focus of these audits. Also as I understand not all institutions have been audited just yet.
Putting two & two together I’d imagine this is where this requirement is coming from for the second provider.
I’ve been told that the CB haven’t been much help in setting out guidelines in terms of where additional evidence is required so we are seeing quite a few variances between requirements from providers.
if the bank have asked for additional evidence of SOW it will be quite hard to get that waived.
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I have forwarded some of the additional information to the bank this morning, but if the bank insists on the copy of the contract, this would mean hassle for me and quite a bit of expense as it would need to be translated to English. And how do I know that they don't ask for even more information, where does it end?
 
Mona G said:
It has not occurred to me that I could be suspected of any sort of money laundering involvement and yes, I perceived this request for 3+ years of statements and a copy of the property sale document as an invasion of my privacy. Also, perhaps in my naivety, I I felt slightly insulted with this lack of trust after weeks of sending to the bank all and every single piece of information they have requested.
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It is a voluntary agreement between you and the bank.

They are almost certainly asking for no more than they are legally entitled/obliged to.

They also have legal obligations to not share this material with a third party, and they should probably have internal restrictions too.


Mona G said:
but if the bank insists on the copy of the contract, this would mean hassle for me and quite a bit of expense as it would need to be translated to English
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A bank may show flexibility here. The contract in a foreign language does not bind them, they just need to be satisified that it is what is says. A translation of the key parts might be enough. They may have staff internally who speak the language too, and you could ask them to take this approach.
 
As NRC says, the banks are legally obliged under anti-money laundering legislation to gather sufficient data is need to show where the funds came from.

It's easier for the bank that holds your savings account, as they have likely satisfied themselves as to the source of the funds in that account at the time you lodged them. The regulations in effect at the time may have been less onerous.

Anti-money laundering regulations are ever evolving and the new back needs to satisfy current regulations before it can accept these funds.
 
Leo said:
and the new back needs to satisfy current regulations before it can accept these funds
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The existing deposit funds should never pass to the new bank?. They'd go to purchaser via solicitor.

But there are AML aspects to it.
 
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