Abbey won't accept deposit!

MortgageMamma

As stated above by MMD and SS, this is your mortgage advisors fault, they should have known Abbey would have done this, and they should have checked the T & Cs before you filled in the application. One quality thats crucial in a mortgage advisor is that if you are unsure of something to go to the lender and check it. I think you need to look for an advisor with a little more experience. There are quite a few lenders that will accept family gifts.

missile

Very strange, I have bought and sold several houses but never been asked who would live in them. Can't see why your partner does not wish to be named on the mortgage. He is effectively gifting you the money for the deposit, so simply ask him to give you the money ...... then you can pay deposit?

AndrewSmith

missile wrote:

Very strange, I have bought and sold several houses but never been asked who would live in them. Can't see why your partner does not wish to be named on the mortgage. He is effectively gifting you the money for the deposit, so simply ask him to give you the money ...... then you can pay deposit?

Really?

On every mortgage application you will be asked whether anyone over the age of 17 but not named on the mortgage will be living with you at the property, or in the case of buy to let you will be asked on what basis the property will be let (normally assured shorthold tennancy).

This is beacuse they have to give up their 'squatters rights' (being very simplistic) should the property be reposessed and have to sign authority to do so.

Also on mortgage applications you will be asked the source of the deposit funds. If you simply say 'savings' is it not going to look a little suspicious to the lender when they check your bank statements, to see a credit for the deposit amount being made just before the statement is sent?

At the end of the day the lender owns the mortgaged proportion of the property until you make your final payment / pay it off. Therefore do they not have every right to know who is living there and how you are funding the deposit? Bearing in mind that they have no obligation whatsoever to lend anything.

To the original poster:

You have done everything totally correct by being completely honest about the situation. It is not possible without knowing the case details to point the finger of blame however it is questionable as to whether Abbey are the most suitable lender for these circumstances, however there may be over-riding factors to which we are not privvy.

A lesson learned ready for your application.

Andy

missile

I had no doubt that the post was correct and others have fully explained Deed of Consent forms. I was merely commenting. It has been a few years since I last applied for a mortgage and I guess this is a new requirement or maybe it has always been so and I just forgot, whatever I still do not understand what the problem is for Abbey? Surely this is no different to a family with age 18+ kids. Would they refuse to lend to them?

If it simply because the deposit is from her partner, then what is wrong with my proposal? I would never suggest telling lies, but as I suggested if her partner gifts her the money. She can honestly say it is my money.

Of course Abbey have a right to decline any application, but to suggest that a morgage lender would check to see when the funds had been credited into her account and decline her application on the basis that it has recently been credited is IMHO ridiculous. All lenders have strict procedures to follow but most are very glad to accept new business

To the orriginal poster:
As MortgageMamma suggested you might be best to seek advice from a "good" morgage broker. There are many on your local High Street or those who provide good service on line. A personal recomendation might help you choose the right one for you.

AndrewSmith

missile wrote:

Of course Abbey have a right to decline any application, but to suggest that a morgage lender would check to see when the funds had been credited into her account and decline her application on the basis that it has recently been credited is IMHO ridiculous.

No one said they would decline it on that basis, however most lenders seeing this would ask for further clarification as to the source of the deposit, ie statements for the account from which it has been transfered if you say it's savings etc.

To be honest whether you think it's ridiculous or not is of no consequence to the decision made by the lender. It is a fact that on a number occaisions many lenders will ask for proof of deposit. If the statement shows recently deposited funds, the lender may want investigate this further. How do they know that the borrower hasn't simply taken a loan out for this money? It could also have implications under the Money Laundering regulations.

Anyway, to sum this up, it happens. FACT.

The lender reserves the right to take any references it deems necessary ti help make the decision to lend, and reserves the right to decline or refuse a mortgage application without having to give reason.

There may be no one individual reason, but a number of combined things which on their own would not cause a problem.

missile

I do not understand why you are having a pop at me?

Just because you think it is so, does not make it FACT. I guess almost everyone is aware of money laundering regulations and what you suggest IMHO is well beyond that. I would be very interested to hear from a.n.other qualified morgage broker who thinks it likely that any lender would go to such lengths.

As a matter of FACT, three years back I did provide the deposit for a mortgage with the Woolwich and they did not ask where I got the money.

AndrewSmith

Who is having a pop at you?

Dont be so sensitive. I am speaking from my experiences with lenders over the last 12 years of mortgage broking. Not saying it happens every time but it does happen. It is not I that suggests what some lenders will ask for, merely telling it how it is from past experience. Sone a while ago, others very recent.

You admit yourself that it was a few years ago since applying for a mortgage. The last mortgage aplication I placed was about 15 minutes ago.

Just because you dont agree with the way some lenders operate it does not mean that someone is having a pop at you.

missile

I do not think I am being over sensitive but I do object to you rubbishing my suggestion and I do not agree that money gifted to the morgage applicant would be grounds for rejection by mortgage lenders. There must be many thousands of parents who have done precisely that for their offspring.

In my view and certainly in my experience the Woolwich does not share your view of what checks are required. As far as I am aware the Money Laundering Regulations have not been revised in the last three years?

You may be a qualified broker, but I doubt you have access to mortgage lenders procedures and therefore I would suggest your opinion on what checks they are required to make is of no more value than mine?

As stated, I would be very interested to hear if the other qualified advisors share your view.

I wonder if the "ordinary" people on this forum have had this Spanish Inquisition to prove where they got their deposit?

MortgageMamma

Missile

As a qualified and experienced mortgage broker I couldnt disagree more with what you have said, and part of being a broker is exactly to have access to every lenders terms and conditions.

I support wholeheartedly what Andrew Smith has said and he is 100% correct. Andrew Smith has a good reputation on these forums, has over 12 years experience and as a result I know personally that he speaks from an educated and experienced stand point.

The general public, no matter what is construed on here, do not have access to the level of information made available to mortgage brokers by lenders, and to add to that, we do not have numerous sets of letters at the end of our names for the fun of it.

stanmoresaver

missile wrote:

I do not think I am being over sensitive but I do object to you rubbishing my suggestion and I do not agree that money gifted to the morgage applicant would be grounds for rejection by mortgage lenders. There must be many thousands of parents who have done precisely that for their offspring.

To be honest- you are probably right that many offspring have been helped by their parents- most however will not have used a deed of trust- just given them the money.

In my view and certainly in my experience the Woolwich does not share your view of what checks are required. As far as I am aware the Money Laundering Regulations have not been revised in the last three years?

No they haven't but the FSA regulation of mortgages now means that a tighter regulatory regime overseas all aspects of mortgage activities

You may be a qualified broker, but I doubt you have access to mortgage lenders procedures and therefore I would suggest your opinion on what checks they are required to make is of no more value than mine?

To be honest- most ( good and experienced) brokers have a very good idea of the procedures of the lenders they use- after ll they are paid the same to get the deal through so why spend longer

As stated, I would be very interested to hear if the other qualified advisors share your view.

I wonder if the "ordinary" people on this forum have had this Spanish Inquisition to prove where they got their deposit?

I think, to be fair, the questions were asked to try to help the OP, that is the spirit of MSE- helping each other!

SS