Help please - Seeking Advice: Gift Amount Rejection by Nationwide Lender

Lets_fly

Dear Community,

I recently encountered a perplexing situation during my mortgage application process, and I'm seeking some guidance and advice from those who may have experienced something similar.

I opted to work with a mortgage broker to secure a mortgage for a new property. As part of the application, I included a gifted amount from my mother to assist with the purchase. However, I was shocked to learn that the lender, Nationwide, rejected the gifted amount.

What makes this situation particularly confusing is that just two months ago, the same lender had accepted the gifted amount when I applied for a mortgage for a different property. In fact, the mortgage was approved, and the offer is still valid until April 16th, 2024.

Now, after investing in fees for the mortgage broker, solicitor, and other associated costs, I find myself at a significant loss, both financially and in terms of time and effort.

I'm feeling quite lost and uncertain about what my options are moving forward. Has anyone else experienced a similar rejection of a gifted amount by a lender, especially when they had previously accepted it? What steps did you take to resolve the situation, and were you able to salvage the mortgage application?

Any advice, insights, or shared experiences would be immensely appreciated. Thank you in advance for your help.

user1977

What is your broker saying about it?

elsien

What has your broker said about the decision? Has anything else changed - size of the overall deposit, etc? 

Lets_fly

user1977 said:

What is your broker saying about it?

This is the response from Broker 

'I have chased the lender and they have come back saying that they can still not accept the deposit amount  im afraid.

 

I have been exhausting going back and forth with the lender 

Please do let me know how you would like to proceed or any alternative proposal you have.'

Lets_fly

elsien said:

What has your broker said about the decision? Has anything else changed - size of the overall deposit, etc? 

elsien said:

What has your broker said about the decision? Has anything else changed - size of the overall deposit, etc? 

The gift  amount has not changed all remain the same for both the application. Just the property value changed from 520k to 560K 

amnblog

Iceberg question. The problem here is in the two thirds we don't know about the situation.

If the gift is coming from the source stated, is the source's funds, and can be proven as such and proven as a gift, Nationwide will not have a problem with it.

EssexHebridean

Could also be that the lender has changed their own requirements within the timescale between application 1 & application 2? So they are prepared to honour those where they have already made offers,  but not to make offers on any new ones which don't meet the new conditions. 

ACG

Why are you going back and forth with the lender? 
This is for the broker to deal with. 

As AMN says, the devil is very much in the detail. Accepiting something previously does not mean they have to accept it going forwards, criteria can change, it could have been a mistake, the list is endless. 

Speak to the broker, get them to sort it. 

elsien

Lets_fly said:

user1977 said:

What is your broker saying about it?

This is the response from Broker 

'I have chased the lender and they have come back saying that they can still not accept the deposit amount  im afraid.

 

I have been exhausting going back and forth with the lender 

Please do let me know how you would like to proceed or any alternative proposal you have.'

Has the broker not clarified the reason with them?

TrickyDicky101

Lets_fly said:

What makes this situation particularly confusing is that just two months ago, the same lender had accepted the gifted amount when I applied for a mortgage for a different property. In fact, the mortgage was approved, and the offer is still valid until April 16th, 2024.

Isn't this likely to cause a problem in that Nationwide already has an offer on the table for you and you've gone back to them (via the broker) for an additional offer (affordability issue)?  I could be wrong but maybe one of the brokers would like to comment here...

Lets_fly

amnblog said:

Iceberg question. The problem here is in the two thirds we don't know about the situation.

If the gift is coming from the source stated, is the source's funds, and can be proven as such and proven as a gift, Nationwide will not have a problem with it.

 I have provided the Bank  statement for gift amount . In the statement some of the transactions are cash deposit and Investment company returns payout. Based  on this they are rejecting the overall gift amount.