mortgage deposit problem?

yellpunk

Hi
Im hoping someone can give me some advice on a strange problem.
After my mortgage broker noticed a spelling mistake in my partners name, they notified our mortgage lender who then pulled our mortgage offer, credit scored my partner again and then offered us 10k less than we need to buy the house! As it was my partner that was bringing the offer down, we were advised to apply in soley my name. The offer came back as 10 grand more than we need. Great! But here's the problem. My partner owns the house we're selling and therefore has the deposit for the new house, but with her name on the mortgage we cant borrow enough to buy it! Is there a way around this where she can give me the money or have it transfered into my account from the sale? It all seems very complicated for something that should be quite easy!
thanks

CKhalvashi

The deposit will be a gift/loan from your OH in this case.

Mortgage companies don't like borrowed money, nor are they particularly happy with gifted deposits, so bear this in mind.

Expect the amount to come back as less.......

CK

kingstreet

Lenders do not like the deposit coming from someone who will reside in the property who is not party to the mortgage/ownership.

This has happened to us. The client omitted their middle name from the data capture form and we obtained a decision in principle without it. When it came to light, the case had to be re-keyed and the maximum lending fell from 90% to 85% and the borrower couldn't afford the increased deposit.

The case did not proceed.

There isn't "a way round it" you need to find a lender willing to accept a joint application by the sound of it. Your broker should be resolving this. BTW whose error was it? The broker's?

yellpunk

Thanks
Yes it was the brokers fault. Went with original lender again because we had already paid £450 for mortgage valuation. Mortgage LTV is 85%

Keekles

Given it's the broker's mistake and you've suffered financially as a result; you should be entitled to compensation. As a broker they should also be acting in your best interests, which means if going to an alternative lender is the correct course of action - they should do that.

Dave_Ham

Claim for the valuation fee from your broker and get a new one. We all can make mistakes and the name is a poor one, but can happen.

The advice to go sole name with no plan on the deposit is reckless and naive.

You would be requesting the solicitor to have simulataneous echange/completion and therefore (and rightly so) full disclosure on the source of deposit and living arrangements. A solicitor is not going to stand for this and therefore more cost, time and emotion on your part.

Which lender are offering you £10k less on joint names?

SuzieSue

kingstreet wrote: »

This has happened to us. The client omitted their middle name from the data capture form and we obtained a decision in principle without it. When it came to light, the case had to be re-keyed and the maximum lending fell from 90% to 85% and the borrower couldn't afford the increased deposit.

Why would omitting a middle name reduce the amount they were willing to lend?

kingstreet

Original credit score result was false.

Adding middle name aligned credit history and resulted in lender being willing to lend a lower LTV.

yellpunk

Thanks all
Its the Halifax. Trouble is our credit scores have been affected by this somehow, and now I'm worried that nobody else will lend at a reasonable rate

Thrugelmir

yellpunk wrote: »

Its the Halifax. Trouble is our credit scores have been affected by this somehow, and now I'm worried that nobody else will lend at a reasonable rate

Unlikely. The reason was already there on the credit file I suspect.

The reduction in the offer suggests there's some debt
outstanding.

yellpunk

Unlikely but true. I'm not sure how relevant it is but my Experian credit score has dropped by over 150 points since first application. There is definitely no outstanding debt anywhere.