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Overseas gift deposit BTL

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Hi, just posting my question here and hoping some one can share their experience. It is Santander BTL application with  LTV 70%. Single applicant. I am a full time employee.  After nearly two months waiting (application submitted on 30/11/20) , Santander head office got back with requesting further documents regarding non-EU overseas gift deposit.  I have a gift deposit £26K from Mom 10 months ago.  They needs my mom’s three months bank statements before the transfer. But I found the bank statement shows my mom’s friend loan repayment 15K. I am not sure Santander will accept it.  At that time, my Mom had 20K savings in another bank account (one year fixed term deposit ) but she didn’t realise it would be a issue  and just use the bank account where shows loan repayment from her friend to transfer gift monies to me. I was advised here by a profession that Santander  BTL will not accept third party contribution( great appreciate the point) Should I go ahead with Santander or just give up ? I feel so frustrated and could not sleep very well.  If I provide requested documents to them, It may take another one or two even three months waiting with back and forth queries. Even though I may get rejected in the end. It would affect my credit score and affect my next application.  If I start new application  with new Lender simultaneously,  will the two applications would be affected by each other? Sorry for too many questions. Feel so panic now. I would be appreciate it if anyone can advise me on it. Much appreciated your help!

Comments

  • K_S
    K_S Posts: 6,877 Forumite
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    edited 23 January 2021 at 8:42AM
    @alvin5 Just to add a bit of nuance to the Santander BTL criteria re deposit, this is what it states -
    - if your seller is willing to wait and you can get the documents requested at this stage, then since you've got this far it's worth continuing with Santander and seeing where it gets you.
    - on the other hand if time is of the essence then it may be worth considering a BTL lender who is ok with foreign family gifted deposits. Though tbh there is no guarantee that they (or the solicitor) will not end up asking for similar stuff.
    - your credit check from Santander is not by itself going to stop you from getting another BTL mortgage, so don't worry excessively about that

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • Alvin5
    Alvin5 Posts: 16 Forumite
    10 Posts Name Dropper
    K_S said:
    @alvin5 Just to add a bit of nuance to the Santander BTL criteria re deposit, this is what it states -
    - if your seller is willing to wait and you can get the documents requested at this stage, then since you've got this far it's worth continuing with Santander and seeing where it gets you.
    - on the other hand if time is of the essence then it may be worth considering a BTL lender who is ok with foreign family gifted deposits. Though tbh there is no guarantee that they (or the solicitor) will not end up asking for similar stuff.
    - your credit check from Santander is not by itself going to stop you from getting another BTL mortgage, so don't worry excessively about that
    Many thanks! K_S  your advice always so helpful! 
    I will try Santander.just give up to meet  stamp duty holiday. It is also too late for solicitor to complete  conveyance before 31 March as well. 
  • Alvin5 said:
    K_S said:
    @alvin5 Just to add a bit of nuance to the Santander BTL criteria re deposit, this is what it states -
    - if your seller is willing to wait and you can get the documents requested at this stage, then since you've got this far it's worth continuing with Santander and seeing where it gets you.
    - on the other hand if time is of the essence then it may be worth considering a BTL lender who is ok with foreign family gifted deposits. Though tbh there is no guarantee that they (or the solicitor) will not end up asking for similar stuff.
    - your credit check from Santander is not by itself going to stop you from getting another BTL mortgage, so don't worry excessively about that
    Many thanks! K_S  your advice always so helpful! 
    I will try Santander.just give up to meet  stamp duty holiday. It is also too late for solicitor to complete  conveyance before 31 March as well. 
    Just out of curiosity, did you do application yourself or through broker? Santander I think only go through brokers for BTL.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Alvin5 said:

     They needs my mom’s three months bank statements before the transfer. But I found the bank statement shows my mom’s friend loan repayment 15K. 

    If it was as you describe. Then what's the issue. As the transaction should be fully documented. Be odd to lend such large sums on an ad-hoc basis. 
  • Alvin5
    Alvin5 Posts: 16 Forumite
    10 Posts Name Dropper
    AAGG1234 said:
    Alvin5 said:
    K_S said:
    @alvin5 Just to add a bit of nuance to the Santander BTL criteria re deposit, this is what it states -
    - if your seller is willing to wait and you can get the documents requested at this stage, then since you've got this far it's worth continuing with Santander and seeing where it gets you.
    - on the other hand if time is of the essence then it may be worth considering a BTL lender who is ok with foreign family gifted deposits. Though tbh there is no guarantee that they (or the solicitor) will not end up asking for similar stuff.
    - your credit check from Santander is not by itself going to stop you from getting another BTL mortgage, so don't worry excessively about that
    Many thanks! K_S  your advice always so helpful! 
    I will try Santander.just give up to meet  stamp duty holiday. It is also too late for solicitor to complete  conveyance before 31 March as well. 
    Just out of curiosity, did you do application yourself or through broker? Santander I think only go through brokers for BTL.
    Yes through broker. MB called Santander and was told that they cannot be advised on it 
  • Alvin5
    Alvin5 Posts: 16 Forumite
    10 Posts Name Dropper
    Alvin5 said:

     They needs my mom’s three months bank statements before the transfer. But I found the bank statement shows my mom’s friend loan repayment 15K. 

    If it was as you describe. Then what's the issue. As the transaction should be fully documented. Be odd to lend such large sums on an ad-hoc basis. 
    Thanks it is a loan repayment. Sorry I may not get it. what does it mean” Fully documented”? 
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Alvin5 said:
    Alvin5 said:

     They needs my mom’s three months bank statements before the transfer. But I found the bank statement shows my mom’s friend loan repayment 15K. 

    If it was as you describe. Then what's the issue. As the transaction should be fully documented. Be odd to lend such large sums on an ad-hoc basis. 
    Thanks it is a loan repayment. Sorry I may not get it. what does it mean” Fully documented”? 
    Prove that it was an indeed repayment of a loan. 
  • Disregarding where your mum got the money from, does your mum live outside the EEA?  I ask because Santander do not accept deposits originating from outside the EEA on BTL cases.  

    How long have you had the money in your account?  I ask because a lender clarified with me recently that they turn a gift to savings once a certain time has passed with it being in the clients account
  • K_S
    K_S Posts: 6,877 Forumite
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    edited 25 January 2021 at 3:48PM
    Disregarding where your mum got the money from, does your mum live outside the EEA?  I ask because Santander do not accept deposits originating from outside the EEA on BTL cases.  

    How long have you had the money in your account?  I ask because a lender clarified with me recently that they turn a gift to savings once a certain time has passed with it being in the clients account
    @Deleted_User If I recall correctly, the mum is outside the EEA and the OP has by now had the money in their account for 10+ months. If I understand correctly what happened was that the deposit was declared to be partly gifted only at conveyancing stage which was then communicated to the lender who escalated it to "head office" which then kicked off this round of documentation requests.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • Sounds like Santander were a strange choice then.  Unless the broker checked with them and they are classing this as savings but if its a gift coming from outside the EEA then they certainly wouldnt be my lender of choice. 
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