Nationwide stopping exchange due to partial gifted deposit

nickgarden17

Hi folks,

Situation:

Buying a house valued at £205k. Putting down a deposit of £25,500. Was meant to exchange yesterday, but it turns out my mortgage advisor didn't note on the application that £10k was coming from a family gift, in contrast to my solicitor who did. Nationwide have said our affordability has therefore reduced and if we want to exchange we will have to put in an extra £10k (!!). Seems absurd, my income is still plentiful at £42k, my deposit is still the same. 

Good news is we actually had £37k in savings, so have now submitted statements to nationwide showing this, which we're claiming means the gift is just additional money, not used for the purchase. 

However, it's been a nail biting 24 hours so far waiting for Nationwide to (hopefully) confirm it's okay. My mortgage advisor isn't keen on chasing them beyond the initial 'escalation' as he says that 'resets the 24 hour response window'. 

Asks:

Has anyone had a similar situation? 

Do you expect we will have an issue?

Is it conspiratorial/overly suspicious of me to think Nationwide want to rework my mortgage deal as we agreed it 4/5 months ago and interest rates have gone up a fair bit since?

Can my mortgage advisor do more to push on this than he says? We really need to exchange today or it will cost us money in an additional month of rent


Thanks all in advance

kingstreet

I can't figure out why affordability is being reduced by a change in the deposit source.

If the loan reduces unless it takes you into a different LTV bracket, the product should be unchanged so your suspicions are unlikely to be correct.

MWT

nickgarden17 said:

...but it turns out my mortgage advisor didn't note on the application that £10k was coming from a family gift, in contrast to my solicitor who did. Nationwide have said our affordability has therefore reduced and if we want to exchange we will have to put in an extra £10k (!!). Seems absurd, my income is still plentiful at £42k, my deposit is still the same.

That doesn't sound like an affordability issue, but simply that they are not going accept that the 'family gift' as a suitable source of funds, so it has to be replaced with cash from an acceptable source.

As long as there is nothing unusual about the source of your other savings I wouldn't have thought you were going to have a problem, just have to provide acceptable proof of where those savings came from and you should be good...

nickgarden17

Still waiting on any response from Nationwide... Mortgage advisor said he escalated it a week ago, no one has reviewed our documents. 

Any tips? 

Rumana03

nickgarden17 said:

Still waiting on any response from Nationwide... Mortgage advisor said he escalated it a week ago, no one has reviewed our documents. 

Any tips? 

Hi. Have you heard anything back?

We are in a situation where we were supposed to complete 2 weeks ago but suddenly last week our mortgage broker said he needed to get the bank (Nationwide) to approve the gift deposit. Property is £257k and originally on the gift deposit form I put down I would be giving 10%. Since then the amount has had to increase as Nationwide said the property is not a house but actually a maisonette so they need 15% deposit. Solicitor is unreachable so our mortgage broker said she could push forward the form. I completed a new gift deposit form but this time putting a higher amount (15%). Still no response from the bank.

Anyone know if this will effect what Nationwide thinks we can afford?

kingstreet

Source of deposit doesn't impact affordability in any way whatsoever.