Help!! Lenders pausing at exchange

lucy25

We are first time buyers at the point of exchange having sent deposit and signed contracts.
We were expecting to hear all was ok last week, instead on Friday my solicitors called saying that the lenders (santander) were unaware our deposit was gifted. Despite this being mentioned initially to them and told no problems and nothing more said afterwards, the gift giver was asked to sign forms and letters for money laundering purposes at the request of our solicitors which was all fine and sorted. The money came from our savings account as was given months ago so never saw a reason to involve the bank.
We are currently awaiting a call from our solicitors with the banks "decision" following them sending all relevant documents relating to the gifted deposit.
I'm so stressed and worried about this, Santander haven't been great anyway so this is even more unnerving!
could they withdraw offer based on this? would our deposit be returned? please give me some advice. Thanks

sal_III

lucy25 wrote: »

the lenders (santander) were unaware our deposit was gifted. Despite this being mentioned initially to them and told no problems and nothing more said afterwards

lucy25 wrote: »

The money came from our savings account as was given months ago so never saw a reason to involve the bank.

So which one is it? Did you, or did you not inform them about the source of some of the deposit?

And by inform I mean provide them with a copy of the gifted deposit letter or a Santander specific gifted deposit form. If you only discussed it verbally in the branch and didn't provide documentary evidence alongside your mortgage application, no wonder they are putting this on hold.

Since you haven't exchanged yet, I assume your deposit is with your solicitor and will be returned to you if you have to pull from the purchase on account of not having a mortgage offer. You are likely to lose some fees already spent on this deal.

lucy25

we only had a verbal discussion at the very beginning of application where we were told that gifted deposits are fine. There was no point throughout that process that we were asked about the deposits origin so we were obviously unaware we needed to do anything. As First time buyers we have never done this before so not something you know to do when the money was already ours and in our bank account and no one informed us.

kingstreet

Santander criteria;-

We can accept deposits provided by gift.

We will not accept a gifted deposit if:

provided by the vendor (unless an acceptable new build incentive from the builder/developer);
protected by a Deed of Trust (or similar);
the person providing it will be living in the property, but is not named on the mortgage; or
there is a beneficial/equitable ownership/interest in the property.

The list above is not exhaustive, so there may be other instances where we will not accept a gifted deposit.

lucy25

yes I've since saw this so I'm confused why it's causing issues when the solicitors have responded with all documents from the gift giver confirming no ownership etc and gift not to be repayed! hopefully it's just formality and will be ironed out asap

FTBNow

Our mortgage is with Santander, we have a gifted deposit (£1,000 from my dad). He had to prove his identity with the solicitors and provide statements over the last 3 months showing the transaction - I imagine just so they know I'm not paying back and it is a gift - and Santander didn't bat an eyelid. I told my advisor from the offset it was gifted but they never requested further info. Not sure if my solicitors handled it all themselves.

lucy25

Thankyou for your reply! yes exactly that's what we are so confused about they said gifted isn't an issue and asked for no further info about this. The solicitors did thorough checks on my step dad to ensure not repayable and no money laundering or ownership of property etc so I think they are just being difficult !! Seems they have been the entirety of our dealing with them !

FTBNow

If it was in the initial documents with Santander when you applied then I'm not sure why they're playing up: perhaps it was an oversight from someone their end.

lucy25

yes hoping it's a mistake that's sorted easily by them ! Solicitors said they just "don't like surprises" so to give a few days for it to be rectified

FTBNow

I'm sure you'll be fine: they wouldn't have allowed you to sign contracts and send the deposit if it wasn't a done deal.

lucy25

Thankyou!! I'll update once this is (hopefully) sorted anyway!