Nationwide - Mortgage Application - Too many documents

guysl80

Dear all,

We have applied for a mortgage for a2 bed apartment under shared ownership scheme with Nationwide.
Nationwide has conducted the valuation and they are ok with the report. But since the day one they keep asking so many documents. Have you guys experience this sort of requests from the lender.
We are borrowing only 50K. LTV 55%.
The deposit for the property received from parents living outside UK. We have provided the proof of the deposit and how that money reached our account in Uk clearly but still the Lender seems to ask more documents regard the Source of Proof.

Have you ever come across this sort issue before? Its always the Broker contacting the Lender about any isses. Do you think the Broker is not good enough in explaining matters related to our application?

Thanks in advance

ndf9876

Sounds to me like they are simply complying with money laundering regs.

kingstreet

Gifted deposit criteria for non-UK donor;-

A completed Gifted Deposit form is required for any gifted amount of £10,000 or more. Where the decision in principle is a refer, a Gifted Deposit form may be required in some instances.

For gifts of £10,000 or more that come from outside of the UK, donor bank statements will also be required.

If the donor resides and/or the funds being used are within the EEA, 3 months' statements are required.

If the donor resides and/or the funds being used are outside of the EEA, 6 months' statements are required.

guysl80

Thanks for the quick response.

The deposit Source - Money from a Life insurance Policy. We have sent the document stating the money was in the policy since 2017 and few months back that money was transferred to a current account from there transferred to the UK account.
Since life insurance policy account doesnt provide statements as a normal bank account not sure how to give 6 months of bank statements.
The money from the Policy was transferred to the current account 2.5 months ago and from
that account to Uk account within few days of the transfer.

Lender is asking for the 6 months statement of the person who gifted the deposit but as stated above no bank statements are generated by the Life policy Company other than the document mentioning the money was in the Policy account since 2017 and the holder is able to withdraw the money since May 2019.

Thanks in advance

haras_nosirrah

If the money is outside the uk they need 3/6 months statements from the giftor translated if not in a readable language (e.g. russian, egyption)

I avoid nationwide for these cases or would not submit this without having the deposit proof upfront

guysl80

Hi why do you say you would avoid Nationwide? Are they not good in this kind of situations?

haras_nosirrah

Just because their criteria for outside uk deposits is strict and onerous as you are finding. Other lenders don't have the same criteria

I had an Egyptian client and avoided nationwide as getting the 6 months statements translated would have been a nightmare where next cheapest lender £2 a month more just needed a letter and we as broker accepted the 1 month statement from the mother