Mortgage Application and Future Inheritance

Beancounter

Our house has just gone on the market, expecting a quick sale my wife called our current lender to make sure we would get the funds required for our move.

We more than satisfied the affordability etc but things ground to a halt when my wife mentioned we would have my late father's flat to sell or lease in the next 12 months or so.

They then declined to go any further with our enquiriy only saying "the minimum term they would lend for is 5 years and as we will have another property to sell and would likely use this funds to pay off our mortgage they would not offer us funds".

Fair enough in some ways but firstly, they do not know that I will use that to pay off any mortgage. I have yet to decide whether I shall lease or sell that flat and as it is some 12 month down the line I am not stressing about that yet.

My wife did challenge this with them but they said that "this would have come out in the application process anyway". Not sure how this would be as the deeds to my dads flat are still in his and mums name. They also said that any rental income would have to be declared in the application. Again, not income that will be coming our way for at least a year so quite how I can declare that I do not know.

If I go to another lender are we better not mentioning my dads flat and just apply with our current income and outgoings?

amnblog

A little bit baffled as to what the Lender thinks the problem is.

Before you go direct to another lender it is probably worth talking to someone who knows what they are doing as what you have said makes no sense on the face of it - speak to a broker.

Beancounter

amnblog wrote: »

A little bit baffled as to what the Lender thinks the problem is.

Before you go direct to another lender it is probably worth talking to someone who knows what they are doing as what you have said makes no sense on the face of it - speak to a broker.

Indeed! I am going to arrange an appointment with my estate agent's mortgage advisor tomorrow.

Santander have certainly made sure I will be moving all my accounts as soon as we move house!

amnblog

I meant an independent mortgage adviser. No one who will tell his mate the estate agent what you can or cannot afford to pay.

kingstreet

Damn. I was just about to say, I bet this is Santander.

They will not entertain short-term borrowing! I reckon their fee-free approach is based on no overpayments in the first five years and it's drummed into them they make no profit on such business!

amnblog

Don't let them see your lottery ticket in your wallet or they might get worried that you will get a result and pay them off.

amnblog

kingstreet wrote: »

they make no profit on such business!

They wont make much profit losing account holders like this either.


The moral of the story - when you go direct, watch what you mention to the Lender.

kingstreet

It seems they'd rather not have it in the first place...

It's weird how you have to skirt around what your client's plans might be when you speak to them...

... give them a hint the mortgage might be reduced in the first few years and they come over all Incredible Hulk.

amnblog

Every time I tell someone on here not to go direct I am accused of being biased.

amnblog

Which of course, by happy coincidence, I am.

amnblog

BTW


Are we allowed to discount Santander from our product options if the client's granny doesn't look too well and an inheritance is looming?