Nationwide mortgages have attractive rates but are impossible to get

Daniel54

It is eminently possible to find reasonable quality shared accommodation for 12 months without a "creepy" landlord.Borrowing a capital sum of £150k to "overcome" this short term need seems somewhat over the top.

With IHT clearly being a future issue,I would suggest a good way to assist her now and into the future would be by regular monthly giving,which is exempt from IHT as long as it is from freely available income,which in your case it would be.

cns06

(dont take this the wrong way) Let me get this right, you want to spend 150 grand on something that might last 6 months. Mental. Unless there is a huge chance she will be staying there for several years I would be looking for a flat on a 6 month lease.


Even if she is on her own not sharing i.e paying a premium. Its going to cost you £2k in fees etc. Plus c.£150 PCM for interest. Lets say she stays 12 months, that's about £4k. And then when you come to sell, well, that's a whole other problem.


Given you will have overpaid for the flat to start with, because lets face it, when you walk into the estate agents and announce you are buying your daughter a place for £150k they will retire to the back office and "do a little dance" then sell you the place that has been on their books the longest.


Best of luck with it, but if it were me I would write her a cheque for £4k and send her out into the wild on her own and tell her to report back in 3 months.


And FWIW I managed on £50 a day in Berkshire and London for just over 12 months... no bank of mum and dad to bail me out. If you have ever seen a B&B that costs £25 per night.... made me the man I am today LOL (and that may well be your answer.... safe, reliable, you get a meal (ish!) and you come and go as you like). You're welcome.

jmiles1

Thanks for everyone's advice which i appreciate and thank you for. You are of course right as in one sense it is mad what I am doing. The flat though will be registered in her name so its a way of losing money to her now. She will go back to uni in 12 months time so this can then become a rental property for her and generate her an income in future which I am expecting her to manage. If the flat rises in value then she has 2 years after she leaves it to sell it to avoid CGT. Now Nationwide is out of the picture and I am on my own, I have more flexibility what we do with it afterwards.

You are right, we are lucky to have to consider IHT in the future so we need to plan now. We have only one child. we do already pay her a regularly monthly amount (she has no student debt or student loans) as I hate the government for forcing kids to come out of uni with massive debt and having them assume thats ok, its not. I am from a working class family, first generation to go to uni, got a full student grant in the 80s as my mum & dad couldnt afford for me to go otherwise and i have paid income tax handsomely ever since. I have paid far more than my education cost. Hubby's story is similar - no bank of mum & dad for us. we do value what we have which we have earned, we have never had handouts from anyone (other than paid employment) and I believe its right we try and do the best for her. I get the point about her needing to do things herself and thats part of lifes experience.

Back to Nationwide. I havent given up, I have (gently) complained, have had the case reviewed again today and have now written to request they review underwriting decisions and apply a bit of common sense. Am now with the final response team (didnt know they had one until today). they have been very polite and everyone is great and bemused by the decision except the underwriters apply 'rules' with absolutely no flexibility - i want to push ion this. I am also tackling them on data protection and data retention issues. They claim they will keep my data (payslips, bank account details etc) for 6 years. I get that if I had a mortgage accepted with them and therefore a contract between us, but a rejected mortgage application? I dont think so. The data protection act 5th principle states data should not be kept for longer than necessary. Lets see what happens on that one

jimjames

jmiles1 wrote: »

If I cant get funds when I am a very safe bet, what hope do others have?

Bear in mind it is a very specific situation you have which 99% of other customers will not have. Most people borrowing will be wanting to buy a house and will almost certainly not have this kind of issue.

Not much to add to the previous suggestions but it's not something that will affect many people.

Red-Squirrel_2

jmiles1 wrote: »

The flat though will be registered in her name so its a way of losing money to her now. She will go back to uni in 12 months time so this can then become a rental property for her and generate her an income in future which I am expecting her to manage. If the flat rises in value then she has 2 years after she leaves it to sell it to avoid CGT.

Sorry, but that's not a gift, that's a burden you'd be hanging round her neck when the great thing about being her age is the lack of responsibilities tying you down!

Have you told her you'd be expecting her to become a landlord while still at uni? Its a job in itself.

Car1980

Good luck, but Nationwide's underwriters are the most inflexible and pernickety bunch in the business.

jmiles1

Shouldn't be too bad . I have a couple of rental properties and have been a landlord since 2007 and have Lettings qualifications - it's not my day job, I just am too tight to pay a Lettings agent and prefer to manage everything myself. I can act as a managing agent for her.