Mortgage declined due to partner

kazzymac_2

Hi,


I am wondering if someone could help. We have put an offer in on a property for £180k with a £40k deposit of which £15k is sitting in my partners name but he completed a gifted deposit form. He is a discharged bankrupt (2013) so we applied for a mortgage in my name only as I earn £41k pa so felt it was affordable. Went to Nationwide as we heard that they accepted the gifted deposit but have been rejected today due to my partners credit score. I am not sure why this has happened - my mortgage broker has gone back to them and they say that they always credit check any person involved in the application (gifted deposit). Has anyone else heard of this before? Is there anywhere else that will accept the gifted deposit? I am a little confused - thanks.

sleepymans

In my opinion, Nationwide have recently "lost the plot" and dont' deserve your business....suggest you try another mortgage provider or broker.
Good Luck

Thrugelmir

Perhaps the lender feels that you are trying to circumnavigate their lending policies. As your partner is not a related party. Then highly possible that the source is not acceptable. Not least that they will be living in the property and the gift effectively gives them a financial interest in the property. An issue which would be problematic in certain scenarios.

kazzymac_2

Thanks for the replies. Our mortgage broker is working on it this morning so fingers crossed something will turn up.

kingstreet

FWIW the Nationwide gift template doesn't confer authority to carry out a credit check, so I suspect what you've been told isn't true.

http://www.nationwide-intermediary.co.uk/includes/pdf/P2505_03_14.pdf

kazzymac_2

Kingstreet - by whom the Nationwide or mortgage broker? I was surprised that a credit check took place as the application was in my sole name. The form that you attached was the one completed for Nationwide.

kingstreet

Exactly.

The point I'm making here, the only information Nationwide has on the donor is what's on that form and it does not authorise Nationwide to carry out a credit search.

Hence, I do not believe what you've been told.

There's even less justification for a mortgage broker credit checking a third-party and absolutely no point as it would be accepted by no lender I know of...

kazzymac_2

Mmmm it's a bit worrying now. I feel like I should be challenging the Broker on this point but what would they be gaining from this? Should I ask them to go back to Nationwide on this point or would it be pointless to do so? I am very confused now but it makes no sense to me.

kingstreet

I wouldn't have done this case with Nationwide, FWIW.

A gift towards the deposit from a bankrupt who is going to reside in the property was never going to be an easy case to get accepted.

If I were the broker I would be asking what authority they have to carry out a credit search without the subject's authorisation.

Pixie5740

Do you and your partner have any joint accounts?

kazzymac_2

Thanks for your input Kingstreet.
I guess we will just have to wait and see now but I will ask the Broker that question although I suspect it will not change anything now. I will keep my fingers crossed that something will be available.