Natwest refused property deposit. What to do?

JulieScrumptious

Hi All.

Hope you can help?

We have just had the bombshell of the century and I really don't know what to do about it.
We applied for a mortgage at the end of May with Natwest. We told them we didn't have a deposit and that we would be taking out an unsecured loan for it and they said that would be fine, and even offered us a loan from themselves. We passed, as we got a better deal elsewhere.
We got a call this morning from our solicitor saying that Natwest won't accept the deposit as it's come from a personal loan. We were very upfront and honest right from the beginning, so i'm completely confused. What can we do now? The deposit has already been taken. We're supposed to complete on Thursday. I really don't know what to do.
Any advice is appreciated.

_Andy_

No mortgage company will accept a personal loan as a deposit, no idea why they told you otherwise.

Soot2006

The deposit has already been taken. We're supposed to complete on Thursday.

Have you exchanged contracts?

NAR

JulieScrumptious wrote: »

Hi All.
We told them we didn't have a deposit and that we would be taking out an unsecured loan for it and they said that would be fine, and even offered us a loan from themselves.

Did you get this in writing? If not I don't know what recourse you have.

opinions4u

When you applied for the loan, did you disclose purpose of loan as "house deposit" and is this what it said on the form you signed?

Didn't think so.

When you applied for the mortgage, were you asked the question "where is your deposit coming from?"? What did the answer say on the form you signed?

If you can honestly say that for both advances you declared "house deposit" and you checked the forms to ensure the purpose of loan was "house deposit" then you may have a case for mis-selling against Nat West which could lead to you getting any costs reimbursed. It really is a long shot though.

_Andy_ wrote: »

No mortgage company will accept a personal loan as a deposit, no idea why they told you otherwise.

I would guess to get the personal loan target for the month.

JulieScrumptious

We actually did state to Tesco Finance that we were using the money as a 'property deposit' as well as paying of an exisiting car loan and it states this clearly on the loan agreement.

We even went to see a mortgage adviser through a local estate agent and he said that Natwest would be the only provider that would allow us to fund a deposit this way.

No matter now anyway - Panic Over. Don't know how but managed to scrape the barrel, beg and plead and have raised the deposit so should be ok.
Strange how we can't seem to find any cash when i'd like a new handbag. Must speak to my OH about that!
Thanks for all your advice.

benjo

In fairness, at no stage did my IFA, Lender or Solicitor ask me where my deposit came from, nobody asked for proof that I even had a deposit - my solicitor did go so far as to say...
'where is your deposit'
reply 'in my bank'
'It needs to be transfered by **/**/09'.

That said, perhaps there is something in the small print that I signed to say it wasnt a loan - since the money was savings and not a loan perhaps I didnt pay enough attention.

ginvzt

Don't know how but managed to scrape the barrel, beg and plead and have raised the deposit so should be ok

Amazing - in a space for 1 hour and 20 minutes, you managed to organise the deposit! I wish I knew how to do this!!!!

Best of luck with your house purchase.

malkie76

benjo wrote: »

In fairness, at no stage did my IFA, Lender or Solicitor ask me where my deposit came from, nobody asked for proof that I even had a deposit - my solicitor did go so far as to say...
'where is your deposit'
reply 'in my bank'
'It needs to be transfered by **/**/09'.

wow ! When we did ours (4 years ago now) we had to show documentation of us making the savings over time to ensure we weren't laundering money.

Have things changed?

benjo

malkie76 wrote: »

wow ! When we did ours (4 years ago now) we had to show documentation of us making the savings over time to ensure we weren't laundering money.

Have things changed?

I honestly cant answer that, perhaps the documentation I provided to the IFA provided enough evidence Re where the deposit came from, my point was only that I wasnt specifically asked and I dont remember any small print regarding where the deposit came from.

When I was looking for a solicitor I got 3 quotes, one of the quotes outlined charges they made to do a credit search on clients, I thought that was unusual and didnt want extra searches prior to having written acceptance from the lender - perhaps this is in connection with money laundering. The other two solicitors didnt mention credit checks.

Mrs_Bumble

Your IFA and your solicitor should have asked you specifically where the deposit was coming from, it is a requirement for money laundering purposes.

In relation to the solictor and credit search etc, they are all supposed to do a bankruptcy search and you will probably find that the one quote that actually outlined the costs was being more accurate than the others.