Underwriting process with Leeds Building Society

SunshineI

Hi everyone,

I would like to know what do you think and if someone has had any similar experience with Leeds Building Society.

At the moment my mortgage application is with the Underwritter, heis questioning my deposit because it is mainly being gifted by my boyfriend. A requirement from Leeds Building Society is that gifted deposits are only acceptable from Family, husband or spouse.
My financial advisor has said we are spouse.

The other side of this is that we are not going to be living there together at a first stage, that is why they are considering my application as a single one, any chance they might get worried for him moving in?

We both work and my salary is not an issue for a single application.
The mortgage is a shared ownership one.

Any comments would be appreciated.

Thanks

Dave_Ham

Is your boyfriend not included on the application for any specific reason?

If he is not down as has damaged credit or another reason and this is a ploy to beat the system, Leeds are unlikely to like this.

I think they will be worried by this and to be honest not 100% sure they are going to like it.

ACG

Your have an advisor on this!?

Im not a massive user of leeds but i cant see this getting through. A gift has to be without reservation, he is obviously intending at some point to be living there.

Cant you jsut make this a join application and then the issues go away? Or is there a reason he isnt on the application?

SunshineI

He is not in the application because he is still a contractor in his company...
The purchase of the flat will be only under my name and he has provided a gift letter and declared he has no interest over that money...
The money he is gifting is coming from a joint account to my account for the deposit. I was making transfers from my account to the joint account and has just provided bank statems of that, may they consider the money then only as mine even if it has stayed in a joint account?

Dave_Ham

Are you currently registered as living together?

You could put him on the application with £0 income

SunshineI

We are living in the same flat at the moment but not registred anywhere.

If he has £0 income, isn't he going to be considered as a dependant?

Dave_Ham

It will be factored in, but not hugely and the alternative I fear will be the application is declined.

You are expecting them to believe that you are currently living together, he is providing the deposit (as a gift) and that he will be living elsewhere.

Would you believe this, if it was presented in this way?

I would stick your hands up and try this as a joint application, but your broker should be guiding you on this and it is not necessarily your issue but soon will be I suspect

SunshineI

Ok, I will keep that in mind and will discuss with my broker which is the best way to go as he seems pretty convinced I meet the criteria...

Definitely not looking good...

Thanks very much for your comments Dave Ham!

ACG

Im with Dave on this. From the eyes of the lender it doesnt stack up and unless you can assure them it does (which based on what you have said i dont think you can) theyre not going to offer the mortgage.

Im very surprised your broker went down the route of a single application but hopefully it can be rectified.

SunshineI

Thanks ACG.

I will keep you posted as soon as I know something...

To be honest, I'm even surprised he applied to Leeds... (I've read a lot of veeery bad reviews about them but, unluckily after the application...)

ACG

They can be quite lenient on income multiples in certain circumstances so that might have something to do with it?