Is my broker in the wrong?

H2B2K15

Mortgage app submitted to Nationwide through broker, they've came back requesting source of deposit:- 3 months bank statements build up, any large transactions need to be explained.

We spoke with broker regarding deposit before submitting, we have a strange situation where we transfer my parents money each month to be saved, then in May this year they transferred some back as a lump sum when we became serious about purchasing a home. Reason we transfer to them is just to keep our house purchase savings separate to any of our other savings, avoid dipping in if needs be etc.

Broker confirmed as the cash has been in my account now for approaching 6 months, this will be fine to put as savings?! When they came back asking for statements, broker said to get a letter signed by parents confirming the setup and that they have no interest in property. Is this likely to suffice? Or should my broker have thought to put source as gift rather than deposit?

I'm considering ringing him tomorrow and getting app amended to say gift, just for the sake of making the process smoother hopefully? My parents will be happy to confirm the setup, as it genuinely is what goes on, I just don't know if it would save hassle in the long run if I were to amend to gift?

Any help would be appreciated, just feel as though my broker may have been a bit naive/misleading on this one?

anselld

Best to be truthful - it is not a gift is it?, so why say it is?, especially late in the day when the mortgage company have already started to make enquiries.

emmatthews

It's not a gift so don't say it is. There will be evidence of you transferring it to your parents every month.

Your broker hasn't been misleading, but you would be misleading your mortgage company if you declared it as a gift.

marksoton

In reality you've created your own complication. Why didn't you just set up a separate savings account yourself?

I can't see the broker has done anything wrong.

davidmcn

You're paying the broker (among other things) to know what the usual policy of your preferred lender is, so I would go along with what's been advised.

Bear in mind you'll also need to deal with your solicitor's money-laundering requirements (though if it's been in your account since May, I would treat it as your money). I presume you'd be able to show that your income/outgoings left money for these savings anyway.

H2B2K15

Yeah thinking back now I wish we had, but we setup this process years ago not realising it may be an issue at this stage.

We have statements going back years showing money transferred from our account to parents then statement showing lump sum being returned.

Should these statements plus a letter from parents confirming arrangement suffice?

Kynthia

Then what would happen if the lender wanted more statements and saw the regular transfers to your parents? It's just better to be honest.

anselld

H2B2K15 wrote: »

Yeah thinking back now I wish we had, but we setup this process years ago not realising it may be an issue at this stage.

Nobody has said it is an issue, have they?

H2B2K15

No that's a fair point, I'm making mountains from mole hills, story of my life.

In other annoying news, the developer rang this afternoon to say that the lender we have our mortgage app with is over exposed to the development and is no longer offering mortgages there. Is this something my broker should have known?

davidmcn

H2B2K15 wrote: »

In other annoying news, the developer rang this afternoon to say that the lender we have our mortgage app with is over exposed to the development and is no longer offering mortgages there. Is this something my broker should have known?

Unless the broker was involved in the other purchasers' mortgages I'm not sure how they could have known.

liuhutOz

So have you had this news only from the developer and not the lender? Maybe the lender has approved your app and not taking more.
I don't understand why you would think that the broker could have know this, they would not be privy to the lenders mortgage book!
If it was me I'd check the info with the broker and try not the stress!