Nationwide and gifted deposit mortgage - do they like it? Worried

Rollinghills

I'm a bit worried now having read that some lenders do not like money to come from gifted deposits.

My husband applied in his own name to Nationwide. We tried to change it to both of us but the calculator showed they would lend us less and when we tried DIP it wouldn't lend to us (despite my credit score being 999/999 on Experian, I'm also on the electoral register). I just don't get it.

So we are proceeding with a sole mortgage but I am gifting a lot of money to my husband that is about 75% of the deposit. It's not all my money , it's just it is in my accounts because I had better rates.

I am now worried that they will not like it. But we'd be happy to do a joint mortgage, just they didn't seem to want to lend to us on that basis. Would they give us a chance to change it if this is what bothered them?

Just looked at house prices in our area and the house we're buying is valued 20k more than the estimate last month so if this doesn't work I'm worried we'll have to be looking at a time prices are going up.

Rollinghills

Does anyone have any experience of this?

GMS

Speak to Nationwide.

I am guessing you haven't been declared as a dependant and therefore not as residing in the property?

Rollinghills

GMS wrote: »

Speak to Nationwide.

I am guessing you haven't been declared as a dependant and therefore not as residing in the property?

I have been declared as a dependant and residing at the property, should I not have been? Wouldn't want to lie in this respect! Hard to speak to anyone who speaks sense at Nationwide, we've had so much confusing advice that I will write a complaint once this process is over.

glasgowgirl80

I am doing pretty much this exact same thing but with Halifax, I am applying in my name and my husband is listed as residing in the property but hasn't been classed as a dependant (not sure why, might just be Halifax criteria). He has provided 50% of the deposit though. Halifax know about all this and he prepared a 'gifted deposit letter' for my broker but Halifax didn't wan't to see it. I have now recieved a mortgage offer, however the solicitors are now looking at the source of the deposit (for money laundering regulations) and have said they need to inform Halifax that he has provided half of the deposit. Even though Halifax already know about it I am worried the offer may get withdrawn so am on tenterhooks at the moment!

Our situation is complicated (nothing to do with creadit reports) which is why we are doing what we are doing but if you can avoid it then I would. I have no idea what Nationwide's process is as we didn't try them but it might be worth revisting a joint application in your case.

glasgowgirl80

Oh and your credit 'score' means nothing to lenders, its your credit report that matters. Is there anything on it that may have led to you being rejected?

Arae you using a mortgage broker or going it alone?

Rollinghills

We're happy to do a joint deposit but it seems to negatively affect our ability to borrow, and when we tried a joint one keeping everything else the same we were rejected at the DIP stage.

My credit report is perfect also, shows a negative balance on my credit cards and no issues whatsoever.
We have gone directly to nationwide.

Hope yours will be ok too Glasgowgirl.

Thrugelmir

Rollinghills wrote: »

we've had so much confusing advice that I will write a complaint once this process is over.

If you kept the application straightforward there would be no issues. Mortgage advisors aren't there to clarify why something is, i.e. legal implications for the lender or impact on the amount you can borrow.

Rollinghills

Thrugelmir wrote: »

If you kept the application straightforward there would be no issues. Mortgage advisors aren't there to clarify why something is, i.e. legal implications for the lender or impact on the amount you can borrow.

The conflicting information we received related to other mundane matters like can online statements be used or not (yes but we wasted 2 weeks getting original statements after being told to do so), the fact that the online tracking progress shows us clients messages that are intended for internal use only (confusing) etc.

Have not asked about the gifted deposit as I would not expect them to know. I just find their process flow poor.

We got a much better experience from HSBC in the past, it is just not comparable. Shame they don't have the mortgage we want.

glasgowgirl80

Honestly if you are doing anything other than the 'norm' in terms of an application I would really recommend using a broker (I take it you are not), mine was great and found me a couple of lenders who had no issue with the gifted deposit element. There are plenty of lenders out there who wouldn't touch it and it saved me the hassle of going round them all.

kingstreet

glasgowgirl80 wrote: »

the solicitors are now looking at the source of the deposit (for money laundering regulations) and have said they need to inform Halifax that he has provided half of the deposit

That's because Halifax delegates deposit and money laundering stuff to your solicitor, who is also acting for it and is not interested in being given gifted deposit letters and explanations itself as it has nowhere to put them.