FTB: Nationwide mortgage, searches & Gifted Deposit

lucy_l0cket

Hi All... long time lurker, first time poster!

Husband and I have had an offer accepted on a house of £165,000. Applied for a mortgage through Nationwide for £139,000 and have an AIP. The mortgage is to be in OH's name only as I have poor credit history, however the deposit is coming from my mum. Is this likely to be an issue with the application? We have submitted a letter saying the amount is gifted and non-repayable, but I wondered if it may have implications as my mum is not technically a family member of my husband.

Also, we looked at a different house back in March and visited Nationwide to make initial enquiries as to what mortges were available etc. It turns out that, including that house and the current one, Nationwide have done 9 searches on OH's credit file. We have only gone as far as applying for an AIP once, so why have they done this? Will it have any impact on the current full application? It passed the credit check at AIP stage, so are they likely to do another one?

The full application was submitted on 20 June, so we are still waiting to hear whether we have the mortgage offer or not. Survey/valuation completed 21 June and the branch say it is allocated to someone in 'Head Office', which is a good sign apparently. However, even though OH submitted all payslips, P60, etc at the time of application, when I called for an update yesterday they asked for his most recent payslip and P60 again as they say they are missing.

I know asking how long this will all take is like asking the length of a piece of string, but if they are losing paperwork, is it likely to delay things?

Sorry for all the questions in my first post. Am an ever so slight control freak and can't stand leaving things up to other people to sort out, it's so frustrating having to wait! (yes, I know it's not been very long yet )

Thank you.

nick5466

We have just been through this exact process and are due to pick the keys up to our new property today at 14:15

This all started back around the second week of May where me and the OH went to make initial inquiries on some houses and actually ended up buying one.


Our full application took at least 2 weeks as they had to get references from work ect. We had a completion date of today so they had to get the application 'escalated' so it might have took a little less time than normal.

We got told the the gifting letter isn't worth the paper it's written on and is only used to tick a box...

lucy_l0cket

Thanks for the reply nick - glad to hear it all went to plan for you Is your mortgage through Nationwide too? The gifted deposit was not a problem then I take it?

We gave in all the paperwork when we got the AIP, including 6 months of payslips, P60, employer reference (as there was some confusion with OH's 'on call' wage being an "allowance" rather than "overtime"), bank statments, the kitchen sink etc etc! I'm a bit annoyed that they're asking for the same things again as we made sure it was all there at the start so as not to delay things.

As we are FTBs, we had our offer accepted on the basis that we could move really quickly, so I hope this all goes through alright and we get the offer asap. I'm still worried that Nationwide are going to turn it down for some reason.

nick5466

Yes it was with Nationwide. We gave all our doumentation to our solicitors and then tried to forget about it. The only issue we had was the payslips from my other half had to be sent away as the copies didn't come out too well.

We were initially told that the application was provisionally accepted based on the information given and I think at this point Nationwide had done the credit check, they just needed to verify all the documents were correct.

I hope all goes well.

lucy_l0cket

Thanks, so do I! I really hope it is just a question of verification as they have already done numerous credit checks. I'm so worried that something is going to go wrong and we don't get the offer and lose the house.

Simon_gloster

You need to trawl through this site on lenders that like dont like deposits not coming from the applicants of the mortgage.


Recent thread on here, I dont think it was the same situation to you, but NW offered a loan and then declined it on the source of the deposit.

lucy_l0cket

Thanks Simon, I have been trawling constantly this week! I read the thread where someone was refused the mortgage when their deposit was being gifted by about 7 people. That's why I was worried about it. The advisors we've seen at Nationwide have not seen it as a problem in itself, only that it indicates that because it's coming from OH's mother-in-law (my mum), they might class me as a dependent living at the property and that may affect how much he is allowed to borrow. Also, there was the other issue with OH's wages being based on the extra 'allowance' for being on call and it not being classed as overtime.

Despite all my reading and research, there doesn't seem to be any hard and fast rules as to how the full application process works for anyone even when using the same bank/building society. It all just seems to be the luck of the draw and it's so frustrating having to just sit back and wait for results. I only knew they wanted more documents because I called them though, I don't know how long it would have taken for them to request them or how much longer it's going to drag out 'til we know one way or the other. I'd rather them just tell us it's a no than having to keep on hanging on to the glimmer of hope that is the AIP

tulip5

I think it is very important that your name is on the deeds as owner of the property also, your mum is gifting a large amount and whatever happens that should always come back to you. I would say mil qualifys as close relative so gifted deposit should be fine. Absolutely be upfront and honest with every small detail on your application, what you dont want is it to come back and bite you on the bum at the very last minute because underwriters search for potential issues its their job

lucy_l0cket

tulip5 wrote: »

I think it is very important that your name is on the deeds as owner of the property also, your mum is gifting a large amount and whatever happens that should always come back to you. I would say mil qualifys as close relative so gifted deposit should be fine. Absolutely be upfront and honest with every small detail on your application, what you dont want is it to come back and bite you on the bum at the very last minute because underwriters search for potential issues its their job

I would like nothing more than to put my name on the deeds, but my credit rating is shocking and it would not help the mortgage application at all! Is there some way we can re-visit this after the sale has gone through (fingers crossed)? I've read something about a deed of trust I think? I am getting rather confused with it all and trying just to think in the short term of actually getting the offer first and worry about one thing at a time, otherwise I will send myself mad.

We did make sure we had declared every little detail and were totally honest about everything. OH's credit file was excellent, until the extra load of searches from Nationwide were added to it.

Simon_gloster

Agree with Tulip, on the application state that its gifted from a family member....you may have done this already.

Is it his mother in law or his partners mum? If MIL (ish) this will be more robust as opposed to your mates mum giving them the deposit which it technically is.

Nationwide hate false info when it comes to deposit as you have seen on that other thread.

GMS

Check and check again with Nationwide on this. You will be residing in the property without being party to the mortgage and you will be classed as having provided the deposit.

Speak to your chosen conveyancer before doing anything to make sure they are aware of the transaction and ensure they are happy with it.

You may well get a mortgage offer only to find it is pulled during the conveyancing process.