Mortgage Issue Question

lcfcstephen

Hi,

I am currently in the process of buying a house, with completion date of 31.08. It's a new build property. I had been accepted for a mortgage, however TSB (the lender) have turned round and want more information about some of the deposit money. Some of the deposit was money left in trust from my grandfather with my father being the guardian. We cannot find the original trust document paperwork, but the broker and solicitor accepted that this is where the money has come from (been in trust for 20 years etc). I have asked PLS to explain the situation further as I don't believe that what they want is correct - they want my father to sign a gifted deposit declaration, despite already having one which accurately reflects the situation. What do you guys think? Is there anything that can be done? What happens with my completiong date if this form does need signing as my father is currently on holiday and will be until after current completion date

Thank you

Thrugelmir

Completion will be delayed. As the lender will not release the mortgage funds until they are satisfied. Lenders set their own terms of conducting business.

lcfcstephen

And will the homebuilder be okay with that? Do they have to be okay with it? Or is there going to be a point where they could pull the plug?

lee111s

Get the gifted declaration written up, signed and submitted ASAP

lcfcstephen

The issue is that firstly - it's not really my fathers money to gift (as TSB want him to sign it) and secondly he's on holiday until after the current completion date

kingstreet

Presumably, if you don't yet have a mortgage offer you haven't exchanged contracts and haven't been served two weeks notice of completion?

lcfcstephen

I have signed some undated contracts. I was under the impression that everything to do with the mortgage was fine, but the solicitors have said that when they requested the certificate for the advancement of the funds thats when they have asked for more documentation

Thrugelmir

lcfcstephen wrote: »

The issue is that firstly - it's not really my fathers money to gift (as TSB want him to sign it) and secondly he's on holiday until after the current completion date

One assumes then that there's nothing to confirm the original source of the funds. Nor that they are legally yours.

You could always use a fax machine and ask him to DHL the original documents back.

What's the sum involved, is it sizable?

lcfcstephen

It is sizable. We have documentation showing the financial vehicle that was used and guaranteed fund at the end (slightly less than what it ended up being) But I believe it is in my fathers name, held in trust. But we don't have the trust document. Like I said, the solicitors and Broker accepted this after a while. Will TSB also accept it, or will they not budge? (not that I expect anyone to actually know, I am just panicking)

Lemonsqueezer78

For sake of getting things progressing - does it really matter? Get him to sign a gifted deposit declaration just to close of the issue. In either case, signing this doesn't give your father any additional powers over anything or make you liable for anything, so I'm not really sure it makes any difference to anyone (except the lender!)

lcfcstephen

I would agree - but he really fought against signing a standard declaration letter when the brokers questioned it. (which is slightly annoying) I am hoping that he would sign it as it is now more needed than before but also wanted to see if TSB could also change their mind like the broker etc