No Genuine Savings Loan
When a client cannot verify his/her savings pattern over a 3 month period or more, yet he/she has savings, a lender could treat this under a non genuine savings policy. Although this policy is not widely known as being available, it can be found within several major lending institutions and is popular.
A typical non genuine savings client is someone who has the deposit for a home ( generally 5-10% or more), but does not have that money in a bank account for 3 consecutive months or more. This person also does not have equity in a property, shares, or managed funds. This client is also the type who could go and deposit the money into his/her bank account a day before applying for a loan as he/she could have the money in cash at home or recently sold an asset like a car which is the most common example.
In addition, a typical non genuine savings applicant is someone who raised or received their deposit by way of a gift or inheritance from a family member. This is especially such, with parents taking on the responsibility of taking their children’s savings and parking this money under their own name/s to guarantee the savings of their children. Yet, when the person is ready to enter the property market for the first time, his/her entire saving is held in the name of the parents. This is particularly common amongst people from Non English speaking backgrounds. Lenders and mortgage insurers have recognized this, and have a created a non genuine savings policy and product to suite these types of clients.