Mortgage offer withdrawn 3 hours before completion

getmore4less

Whats to stop them renting now?

hopefully they are funding the rental from income and the £74k is for extras?

Thrugelmir

j_j_mooney wrote: »

Hi,

Thanks for all your replies.

My parents were planning on moving into a rented bungalow in the same area. But the people they are renting it from are not willing to wait any longer so it looks like they might loose it. Santander were aware from the very start of the application that the gift was from my parents we even had to send a letter to them from my parents stating that they are gifting the money and they do not expecting it back. Santander have said they were not aware but our solictor even showed us the application and it is clearly stated that it is a gifted mortgage. I just can't believe they can do this on us at such a late stage. We are absolutly horrified.

I should have mentioned on Thursday after we heard this news our broker advised us to submit an application to halifax which we did and they have accepted and they haven't even asked for any income details they are now just asking for payment for a surveyor so fingers crossed if santander don't come back with a favourable answer we can go with halifax although i do find it strange they haven't asked for any financial information from us and also there is no record of them checking my credit report.

thanks again everyone

Are you and your brother intending to reside in the property?

somethingcorporate

What a nightmare, at least it in the family.

This kind of thing can lead to whole chains collapsing and can cause chaos.

Have you taken advice on deprivation of assets? If your parents ever need care in the future they can be treated as still having that £50k they have "gifted" you and (I think) any further down valuation of the house. I.e. if on the free market it was worth £300k and they are selling to you for £200k.

Good luck, sounds like it is just a hiccup with Santander and you can proceed with a more reputable lender, like the local leg-breaker.

j_j_mooney

getmore4less wrote: »

Whats to stop them renting now?

hopefully they are funding the rental from income and the £74k is for extras?

Yes they are funding the rental from their income from their pensions etc but They are frightened to sign a year long lease as they are worried the same thing will happen again with the mortgage then they will be renting and have to continue to pay their mortgage. The bungalow they were suppposed to rent has been held for them for the past 6 weeks and the owner has told them she will not hold anymore.

j_j_mooney

Thrugelmir wrote: »

Are you and your brother intending to reside in the property?

Yes we are both living at home at the moment we have been looking at properties for sometime and when my mother decided to put the house on the market we decided to take it as we love the house.

We did not underpay for the house it was valued at £200,000 and that is what we are paying for it

Thrugelmir

j_j_mooney wrote: »

Yes we are both living at home at the moment we have been looking at properties for sometime and when my mother decided to put the house on the market we decided to take it as we love the house.

We did not underpay for the house it was valued at £200,000 and that is what we are paying for it

I can understand fully why your lender has concerns. This is a matter you need to discuss with them.

getmore4less

j_j_mooney wrote: »

Yes they are funding the rental from their income from their pensions etc but They are frightened to sign a year long lease as they are worried the same thing will happen again with the mortgage then they will be renting and have to continue to pay their mortgage. The bungalow they were suppposed to rent has been held for them for the past 6 weeks and the owner has told them she will not hold anymore.

You just pay their mortgage till you find a lender.

On paper they still live and own the place.

If they don't need the money immediately you could look at a smaller mortgage nad a family loan for the rest paying them back as fast as you can.

Dave_Ham

Did you and your Brother physically put cash into this deal as a deposit, to obtain the mortgage?

If not, this will be the stumbling block. Assuming you are using the equity to be gifted, it would have to be done specifically and the solicitor etc. needs to communicate with the bank..?

If your broker and solicitor are not talking with the Halifax, this could again cause an issue..

Pritchett2003

Hi I am in a similar predicament however have not yet put an offer in on a house to be able to start the process with a mortgage, Santander have told us that we should be fine with our gifted deposit but after reading this I'm starting to worry, my parents are selling their house and gifting us the equity to use as a deposit, only difference is they plan on moving in with us just the property would be in our names rather than theirs? Hope this makes sense, any advice would be appreciated, am I likely to be turned down on a mortgage are there certain things I should look out for?

kingstreet

Pritchett2003 wrote: »

Santander have told us that we should be fine with our gifted deposit but after reading this I'm starting to worry, my parents are selling their house and gifting us the equity to use as a deposit, only difference is they plan on moving in with us just the property would be in our names rather than theirs

Santander/Abbey will not accept deposit being paid by a party which will live in the property but which won't be party to the mortgage.