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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:
Winemewhynot · 26/08/2021 17:20

Try a different broker! My first one wasn’t helpful at all, just found problems not solutions, I had to pay him too. My second one was free as he took commission from the lender and he got the mortgage sorted in no time, so my advice would be try someone else!

Fairlane · 26/08/2021 17:21

Don't give up and please don't feel bad Flowers. I am a single parent and I finally got a mortgage. Keep trying, you will get there.

Leftbutcameback · 26/08/2021 17:25

Ah, so £500 wasn't fees to the broker, but a holding deposit? That makes more sense. We used a broker where we didn't put them, the lender did. I was quite impressed with them.

whynotwhatknot · 26/08/2021 17:28

Maybe its the 75% gift thats going against you-you MB should know about this already though

MaMelon · 26/08/2021 17:31

I agree with others - there may be an issue with the amount of the gift, I’m sure we were limited to how much we could give to DS.

ForensicAccountant · 26/08/2021 17:31

70% gifted - what does that mean - you need to pay 30% back?
This wouldn’t be acceptable to any lender but your mortgage broker should have told you that before applying.
If they have not even looked at the deposit, then that can’t be the problem.
You do come up against some random criteria sometimes but if there’s anything unusual a good broker should always check with lenders before submitting details.

SNKB14 · 26/08/2021 17:32

@Wilmaa

I was gifted money for deposit and they just had to write a letter stating it was a gift and they didn't want it back. Did they ask you to do this?
We also did this
Journeynotdestination · 26/08/2021 17:33

You shouldn’t have had to pay the mortgage advisor unless he/she actually got you a confirmed accepted mortgage!

Blurp · 26/08/2021 17:34

A useful tip we were told when applying for a mortgage is to go to a local bank rather than one of the big national ones. In the local one you're more likely to be able to speak to the manager face to face and explain any special circumstances.

It might be worth a try. It also cuts out the middle man (the mortgage advisor), so saves a bit of money.

3Br1tnee · 26/08/2021 17:35

I'd try again but tell them it's inheritance.

Bjarnum · 26/08/2021 17:40

Poor you. This happened to our daughter - turned out someone with a similar name and same date of birth had a car loan they were still repaying. Took quite a while but it got sorted.

ManifestDestinee · 26/08/2021 17:45

When did people start saying gifted...you mean given?

Many banks reduce offers or deny on this basis in the current climate. Not being able to save for your own deposit can indicate you can't actually afford the mortgage.

Blossomtoes · 26/08/2021 17:48

@ManifestDestinee

When did people start saying gifted...you mean given?

Many banks reduce offers or deny on this basis in the current climate. Not being able to save for your own deposit can indicate you can't actually afford the mortgage.

But surely all the other financial information indicates whether you can afford the repayments? Most people pay more in rent than mortgage repayments. It’s crackers.
KateonSkates · 26/08/2021 17:49

I know I'm missing something here but can't you just say it's your money? Why do you have to tell them it's been gifted?

Magenta82 · 26/08/2021 17:53

@Blurp

A useful tip we were told when applying for a mortgage is to go to a local bank rather than one of the big national ones. In the local one you're more likely to be able to speak to the manager face to face and explain any special circumstances.

It might be worth a try. It also cuts out the middle man (the mortgage advisor), so saves a bit of money.

I'm really confused by this because as far as I know there aren't any small local banks in the UK, would be great if there were!

Do you mean Building Society?

Tistheseason17 · 26/08/2021 17:54

I hope you get this sorted.

Terminallysleepdeprived · 26/08/2021 17:54

@thebiggestloserinthenorth try natwest. I am a single mum, was on 18.5k with 100% gifted deposit from my dad (inheritance release) and that was accepted without issue upon receipt of the letter you say you have.

Obviously LTV has a lot to do with it and yours being shared ownership may complicate things but worth a try. I looked at shared but was lucky to find a fully mine house in budget.

Good luck!

Leftbutcameback · 26/08/2021 17:54

Do you mean that 70% of the deposit was given to you, but 30% of it you saved? That's how I read it

MirandaWest · 26/08/2021 17:55

Have there been rules introduced about the percentage of the deposit that can be gifted? Glad there weren’t 3 years ago or we’d have been screwed. Can afford the mortgage fine but didn’t have the deposit we would have needed (luckily my mum and dad were able to help us) and they contributed 100% of it.

Soontobe60 · 26/08/2021 17:59

My dd had her mortgage refused because the house she was buying was in an unadopted road. This was on a Friday. By close of day Monday her mortgage advisor had found her another product that was approved. Don’t panic, it’s not lost yet.

Leftbutcameback · 26/08/2021 18:00

We had most of the deposit given to us too, by a very kind person. I'm sure that's very common. At the time no-one asked and we didn't say that it was a gift but that was 14 years ago

Itawapuddytat · 26/08/2021 18:04

We had a good chunk of the deposed gifted to us, and we had no problem to get a mortgage (with Nat West ) The person who gifted us the money wrote a letter that it was not a loan and also had to show proof of the origin of the funds for money laundering purposes. That was all, and it happened a few years ago.

Dontwatchfootball · 26/08/2021 18:07

It is just horrible right now. I sold to a FTB and she has had to jump through so many hoops. they obviously really dont want to lend and want to avoid it at all costs. I felt so bad for her. So sorry.

Blurp · 26/08/2021 18:07

@Magenta82 yes, Building Society I guess! I'm not that clued in with the finer details! We went to a local one and they were really helpful.

CayrolBaaaskin · 26/08/2021 18:07

@ManifestDestinee - gifted is a verb and has been for hundreds of years. It’s means given without consideration. You’re welcome!