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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

...to be so upset but mostly angry that I've been turned down for a mortgage

159 replies

thebiggestloserinthenorth · 26/08/2021 15:35

Hi all... Single mum here. I've been saving for years to try and get some money for a deposit as so much bad luck with renting. Was gifted some money by a relative.
Finally got a 'yes' decision in principle from a lender through a mortgage advisor (shared ownership) and so happy as just want stability for me and my child. Today I heard that they've now refused the mortgage application based on some of the deposit being gifted?
I have zero debts, a decent job and am so upset about this.
How are you meant to get on the properly ladder if you don't get gifted money?
Feel so deflated now.
AIBU to feel so angry... also have shelled out nearly £1000 in fees (holding fee & mortgage advisor fee..)
😢

OP posts:
Blitzes · 26/08/2021 16:03

Ah it’s tough but you’re not a failure! Any decent mortgage advisor will be able to find you a mortgage.

My first house was purchased as a single parent and the mortgage process was tough but my broker was a fantastic lady and she found me an excellent deal although we were rejected by some of the bigger banks she sorted it with NatWest in the end. They all have different criteria’s so a rejection by one isn’t the end of the line!

Wilmaa · 26/08/2021 16:03

Your not a failure.
It will happen!
Did they say why it was declined if it's nothing to do with deposit?

Movingsoon21 · 26/08/2021 16:04

Definitely make your mortgage advisor sort this out - it’s their job! And I’m surprised you’ve had to pay them a fee before the mortgage is secured, that’s really unusual

YouLuckyBugger · 26/08/2021 16:05

Has your advisor tried other lenders? Some will say no when others will say yes.

Is shared ownership the only option? Rather than perhaps a flat? In terms of affordability they aren't always the nicer option to lenders as there are both mortgage and rent elements to pay.

YouLuckyBugger · 26/08/2021 16:07

And YY, a good mortgage advisor doesn't just give up when the first application doesn't go through.

I'm not totally surprised you had to pay a fee, we bought our new house last year and had to pay a smaller fee when the application was submitted and then the main fee when the mortgage was approved.

amatsip · 26/08/2021 16:17

Is your mortgage broker a whole of the market as that is what you need.

MojoJojo71 · 26/08/2021 16:17

Try contacting London and country mortgage brokers. I used them after a recommendation on mumsnet, I was struggling to get lenders to take maintenance in account as income unless it was court ordered and they got me a great deal.

www.landc.co.uk/

DelphiniumBlue · 26/08/2021 16:21

It'll almost definitely be the absence of the standard form. Phone them up, or get the broker to, to find out.

TakeYourFinalPosition · 26/08/2021 16:30

Deposit 70% gifted....

Some banks reduced the amount of gifted deposit that they are willing to accept due to Coronavirus. Most have removed the restrictions. If that's the problem, it's likely that the new bank won't have that issue - and I'd be a bit concerned that your mortgage advisor didn't know about this, if they knew how much of your deposit was gifted.

You may want to help your Dad to be able to complete the actual form, that could be one of those stupid things that gets an auto-decline, but I'd not write off your chances of getting a mortgage yet.

LouLou789 · 26/08/2021 16:34

The gifter not only has to confirm in writing that it’s not a loan but also (when I did it) prove that they (the gifter) have had that money for a certain amount of time: and are not laundering it. I found this really intrusive having to send so much info about my financial affairs when it wasn’t even me applying for the mortgage so it might be that.

Dishwashersaurous · 26/08/2021 16:41

It may well be simply because he didn't complete the correct form, and the system has refused because the form hasn't been completed

CaptainPicardsToupee · 26/08/2021 16:43

Very strange. They can be funny about gifts from non-immediate or non-family members, but a direct gift from a parent is very standard in mortgages! Our deposit was mostly gifted from my mum and no issues.

tootiredtospeak · 26/08/2021 16:44

Just get the broker to resubmit with a lender that accepts gifted deposits there are loads.

Leftbutcameback · 26/08/2021 16:45

Another recommendation for London and Country as well

TatianaBis · 26/08/2021 16:46

As you have seen an offer in principle means diddlers squat.

As others have said mortgage advisers are normally paid on commission once the the mortgage goes through.

Lenders are cracking down on lending to people with bank of mum and dad deposits.

Basilandparsleyandmint · 26/08/2021 17:00

I sold my house a few months ago and our buyer was gifted a substantial amount and all went through. Relative had to write a letter as others have said.

WorraLiberty · 26/08/2021 17:00

[quote MojoJojo71]Try contacting London and country mortgage brokers. I used them after a recommendation on mumsnet, I was struggling to get lenders to take maintenance in account as income unless it was court ordered and they got me a great deal.

www.landc.co.uk/[/quote]
I was literally just about to recommend these!

I switch mortgage every five years and they are incredibly helpful.

@thebiggestloserinthenorth if they can't help you no-one can, and they're free to use as they charge the lender.

WombatChocolate · 26/08/2021 17:05

As PP have said, some lenders want a higher % of the deposit to be provided by the borrower…..to show they have the ability to save and are have some financial nouce.

If you go to a broker and state upfront that you received an offer in principle and then it’s been turned down later and why, they could well find you a lender who will say yes, and know if there are ways to present the information about your deposit in a more acceptable format.

Don’t give up. It is frustrating when you’ve paid out though.

FayCarew · 26/08/2021 17:11

You are not a failure. Don't give up.

Conniethesensible · 26/08/2021 17:12

Awh that’s heartbreaking and sucks so much - no you must be feeling so deflated. Big hug ♥️♥️

Singlebutmarried · 26/08/2021 17:12

It’s the percentage of the amount of deposit gifted. When being given such large sums of money it calls into question your own ability to save.

Many lenders don’t like it if more than 25% of the deposit is gifted.

Singlebutmarried · 26/08/2021 17:14

@Singlebutmarried

It’s the percentage of the amount of deposit gifted. When being given such large sums of money it calls into question your own ability to save.

Many lenders don’t like it if more than 25% of the deposit is gifted.

Also your broker should know that.
Blossomtoes · 26/08/2021 17:15

You’re not a failure @thebiggestloserinthenorth. I despair at how difficult it seems to be to get a mortgage now. In fact I despair at how intrusive financial organisations are allowed to be generally.

I hope you can find a lender with some common sense.

Brighterblighter · 26/08/2021 17:19

Which lender was it

Please don't feel like a failure op, my dh bank wouldn't even let me join his joint account because I was a sahm at the time!!

One threat to contact twitter and let mn know.. And that soon changed...

My own bank I've been with since a child wouldn't give me a mortgage... I can't stand them and they benefit from my lazyness.. It's such a horrid feeling... But keep plugging on.

Brighterblighter · 26/08/2021 17:20

Even when we re mortgaged with our current bank having been customer for about 9 years it almost seemed like that was an issue! Even with dh on netter salary and me working..

It's not you it's definitely them