Help with a mortgage application

Tarot_Barnes

Hello,
I hope someone can help.
I'm trying to apply for a mortgage with Skipton Building Society but they have started to make worrying noises.
I am 29 years old and purchased my house outright in December with the proceeds from the sale of my previous home. I did not have a morgage at the time because I had paid it off with a combination of my own savings and money that had been held in trust by my mother from my maternal grandmother.
I want to take a mortgage out now because I want to help my sister buy a house down south; she is several years younger than myself and out of work (she wants to move to an area with better job prospects) so she can't get a mortgage without a punishing repayments.
I'm aware that I have to own a house for 6 months before I can take out a mortgage, but when I applied, Skipton said this wouldn't be an issue so long as I complete the application after I've owned the house for 180 days.
Now, however, Skipton are saying they don't believe my reasons; they say most people my age don't have enough money to buy a house and find it hard to believe that I want to loan it to my sister.
I feel like I'm being victimised for actually saving my money and trying to support my family. I'm terrified that they're going to stop the mortgage and then I'm going to have a declined mortgage on my credit report.
I'm not sure what help anyone can give but I'm hoping someone will have some advice.

Thank you.

Tarot

ACG

I have never used them or even heard of them.

I wouldnt have thought you would have a problem with most lenders. If they dont believe you there isnt any way you can really prove otherwise with that.

Maybe speak to the underwriter or a manager but short of that i think it might be time to find another lender?

somethingcorporate

If she is out of work she won't be able to get a mortgage at all.

Unless you intend to buy her a house outright I don't think you are going to have much luck here.

sockpuppet

I think you need to double check who your lender actually is as I am sure there is not one called Swindon???
Do you mean your broker is in Swindon?

Tarot_Barnes

<slaps forehead>
Sorry; I meant Skipton Building Society, not Swindon.
I do apologise; I'm dyslexic and after the phonecall this afternoon the situation has me quite worried, which doesn't help.
Thank you.

I_just_love_a_bargain

Why not have a buy to let mortgage and your sister pays you rent which covers the mortgage! This way you stay in control of the Property.
I knew a lady once who did the same as your thinking of doing for her only niece.
Low and behold the niece never paid her aunts mortgage and the aunts house was repossed.

ACG

I have always found Skipton to be pretty good.
I know brokers can speak to the underwriter, im not sure if applicants can but it may be worth asking?

But i think as has been suggested, a Buy to Let mortgage may be the way forward?

Goldiegirl

The possible reason the prospective lender (whatever their name is) would have with this is the unusual profile of the applicant.

It is very unusual for a 29 year old to have previously owned a house and to have paid the mortgage off in full. Then to buy another house mortgage free and then within a very short time want to have a large capital raising mortgage on the property.

The scenario has some of the hallmarks of money laundering - a person who you wouldn't expect to have large sums of money, buying houses, paying off mortgages and then taking out another mortgage. It could look like you are moving dirty money round the financial system to disguise its origins.

Perhaps you need to approach the lender, with proof of your previous savings balances and confirmation of how you were able to save such large sums of money and details of the trust fund.

Tarot_Barnes

Goldiegirl wrote: »

The possible reason the prospective lender (whatever their name is) would have with this is the unusual profile of the applicant.

It is very unusual for a 29 year old to have previously owned a house and to have paid the mortgage off in full. Then to buy another house mortgage free and then within a very short time want to have a large capital raising mortgage on the property.

The scenario has some of the hallmarks of money laundering - a person who you wouldn't expect to have large sums of money, buying houses, paying off mortgages and then taking out another mortgage. It could look like you are moving dirty money round the financial system to disguise its origins.

Perhaps you need to approach the lender, with proof of your previous savings balances and confirmation of how you were able to save such large sums of money and details of the trust fund.

My broker did mention money laundering... which is part of the reason why I'm worried; I don't want to get in trouble with the law just because I'm unusual and want to help my sister.
So far as I know there was no 'fund' set up; it was money left to me by my grandmother which my mother has kept in an account. Do you think that if she provided her bank records it might help matters?

Regarding what others have said about a buy to let mortgage; I honestly never even thought of that but it might well be a solution. I don't know why my broker didn't suggest it when I outlined what I wanted to do.

Thank you.

Goldiegirl

If you aren't a money launderer, there's nothing to worry about.

Offer to show them proof of where your funds originated from, and see what they say

Tarot_Barnes

Goldiegirl wrote: »

If you aren't a money launderer, there's nothing to worry about.

Offer to show them proof of where your funds originated from, and see what they say

Thanks; I've done that and now I just have to wait and see.
I've never been very comfortable with handling money, which is why this has me so worried.