Alliance & leicester says we have no deposit

bumbler

Hi everyone

a friend at work says this is a good place to get advice and I hope someone can help cos hubby and I are close to the edge!!!

A friend of my dad's has agreed to sell us a house he inherited for £235,000. Because we don't have enough savings he has agreed to pay a 10% deposit for us.

My husband is self employed earning about 35k but only last year's books show more than 15k as he was doing it part time (as well as his job) until about 18 months ago.

I am a care worker and get about £15k including tax credits plus about 150 per week maintenance from my ex.

We went to the Alliance & Leicester as my husband banks with them and they said yes. We did all the paperwork and thought all was fine until they rang last week and asked to see a bank statement showing how much deposit we have!!! I told them my dad's friend was paying it for us and the adviser went away before coming back to say that we could not have the mortgage because we don't have a deposit!!!! They say that the one my dad's friend is paying does not count and we need to find another 5%!!! I don't understand as I thought having a 10% deposit was considerd good these days.

Anyway, we have tried a couple of other places but have been turned down even though we have no debts because my husband has a CCJ even though it has been paid off for 3 years and it was really his ex-girlfriend's.

My husband has talked to a broker who says he can get us the mortgage but wants to charge us £1995.

With stamp duty and solicitors we do not have enough to pay that much and he won't tell us who the lender is so we are stuck :mad:

Now we have had a call tonight to say that unless we have a mortgage in place in 4 weeks they will put the house on the market for the full price.

We cannot afford a house any other way and I do not want to lose out on this one so please help if you can.

Thank you

SkinFlint_2

Why can't your dad's friend just give you the deposit to deposit (sorry) into your account ?

You should then be able to present the statement as the evidence the lender needs, should you not ?

Good luck !

Madjock

That won't necessarily work as the lender may ask where the large bank deposit has come from. I doubt the vendor actually has that amount of money lying around anyway. You ought to see a different broker to get a better deal, there are lenders out there who are ok with you having a vendor-gifted deposit.

Stonk

bumbler wrote: »

Hi everyone

a friend at work says this is a good place to get advice and I hope someone can help cos hubby and I are close to the edge!!!

A friend of my dad's has agreed to sell us a house he inherited for £235,000. Because we don't have enough savings he has agreed to pay a 10% deposit for us.

My husband is self employed earning about 35k but only last year's books show more than 15k as he was doing it part time (as well as his job) until about 18 months ago.

I am a care worker and get about £15k including tax credits plus about 150 per week maintenance from my ex.

We went to the Alliance & Leicester as my husband banks with them and they said yes. We did all the paperwork and thought all was fine until they rang last week and asked to see a bank statement showing how much deposit we have!!! I told them my dad's friend was paying it for us and the adviser went away before coming back to say that we could not have the mortgage because we don't have a deposit!!!! They say that the one my dad's friend is paying does not count and we need to find another 5%!!! I don't understand as I thought having a 10% deposit was considerd good these days.

Anyway, we have tried a couple of other places but have been turned down even though we have no debts because my husband has a CCJ even though it has been paid off for 3 years and it was really his ex-girlfriend's.

My husband has talked to a broker who says he can get us the mortgage but wants to charge us £1995.

With stamp duty and solicitors we do not have enough to pay that much and he won't tell us who the lender is so we are stuck :mad:

Now we have had a call tonight to say that unless we have a mortgage in place in 4 weeks they will put the house on the market for the full price.

We cannot afford a house any other way and I do not want to lose out on this one so please help if you can.

Thank you

Sounds like an unusual case of good sense from the lender to me. 4 times joint gross income, unable to save anything. You'd be first against the wall when the revolution comes (i.e., rates going up). They're rightly ensuring they can get back as much of their money as possible when they repossess and sell your house.

bumbler

Stonk, that is a bit uncalled for. We are paying £850 pm in rent now and the mortgage would only be about £1100 pm.

We own 2 cars outright and we have no debts or anything and have saved up regularly but the cost of our wedding last year has eaten into most of that.

My husband's income is increasing all the time and the 35k is conservative - he has already banked 18000 this year so I don't see why you are being the way you are. We have done our figures and can afford the mortgage - we just want to know which lenders to talk to.

Skinflint, Madjock is right - my dad's friend won't have the cash to give us - and we have already told them we can't get the deposit so they have closed our application.

Mr Helpful - which lenders do you think we should talk to? I have done the search you suggested on Google but no lenders come up. I have looked at http://www.firstrungnow.com and they have a facility to speak with an adviser but I would rather know which lenders we can use so I know we are not being ripped off.

Thank you in advance

silvercar

my dad's friend won't have the cash to give us - and we have already told them we can't get the deposit so they have closed our application.

Every time you make a mortgage application a credit search is noted on your credit record. Too many credit searches can damage your credit rating. Go and see a mortgage broker, preferably one that is fee free, but definitely one who is whole-of-market. They will know which lenders accept vendor deposits and which don't. Go this alone and you risk damaging your credit rating.

Mr_helpful

bumbler wrote: »

Mr Helpful - which lenders do you think we should talk to? I have done the search you suggested on Google but no lenders come up. I have looked at http://www.firstrungnow.com and they have a facility to speak with an adviser but I would rather know which lenders we can use so I know we are not being ripped off.

Thank you in advance

Hi looks like my post got removed. it wasnt sending you to lenders but sites for information as this is a specialised area. I cant name lenders because with out a fact find I wouldnt know which type of mortgae to advise you on but there are mainstream lenders who say they are happy with gift from a friend. You do need to speak to a fees free broker who knows about these mortgages.