Gutted. Declined a Mortgage

zarf2007

Lexiedhb wrote: »

Money has been gifted to me as inheritance but is not in my name- plus some savings of my own, (which I have evidence for) plus the 17ishk that is in his parents name, but was from the sale of his old house......... I am just at a loss to understand why lenders care where the deposit came from- as long as you have the 10% what does it matter!!

Neither of us has the £18600k in one name for the deposit annoyingly.

Because rather naively the government think they are cracking down on money laundering when in reality if you or I were bigtime gangsters or drug dealers we would just have a solicitor in our pocket to completely bypass the checks......typical, they assume that criminals play by the rules when the reality is the only thing deposit checking prevents is people getting on the housing ladder which is an already near impossible process....(unless you are a BTL landlord with multiple properties or a foreign investor)....

Lexiedhb

Grrrrrr tis so very annoying. There should be someone you can go and see- not a broker when you very very first start to look who tells you all this stuff!!

AND to make matters worse Nationwide have charged me £354 for the privilege of being declined........ there had better be a refund on its way!!

Thrugelmir

Lexiedhb wrote: »

I am just at a loss to understand why lenders care where the deposit came from-

There's a number of circumstances in which the money can be reclaimed by creditors of the donors. To the detriment of the lender. So rather than expose themselves to the risk. Lenders will decline the application.

There's more demand than supply. So mortgage lenders can choose their customers. There's no automatic right to a mortgage.

Whalie

Don't know which area you are from and what house £170k buys you but could you go for a cheaper house? Live in it for a year then look for something bigger?

Take the longer view?

Lexiedhb

I dont think the level of mortgage we are asking for is the problem (based on salaries)- so living somewhere smaller would not help. Not that a 2 bed flat is exactly enormous anyway!

dtsazza

Lexiedhb wrote: »

I dont think the level of mortgage we are asking for is the problem (based on salaries)- so living somewhere smaller would not help. Not that a 2 bed flat is exactly enormous anyway!

If you were to live somewhere smaller/cheaper, your deposit would qualify you for an 85% of perhaps 80% LTV mortgage - and at those points, lenders' checks are likely to be less stringent.

It's not so much the amount of money (based on salaries) that was suggested as being important, but the level of security for the bank (based on the LTV ratio). With double the "margin of error" at 80% compared to 90%, they are likely to be much more willing to turn a "maybe" into a "yes" rather than "no".