Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
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:
LBOCS2 · 26/08/2021 18:08

Is your mortgage advisor one connected to the sales office? I presume it's a new build if you've had to put down a holding deposit?

If so, switch advisor - get a proper whole of market independent one, or go to one of the big firms. In my experience the ones tied to your EA or new build sales team concentrate on mortgages which have the highest commission for them rather than finding the best deal you're most likely to achieve.

EarthSight · 26/08/2021 18:08

Are you sure a mortgage adviser is even necessary here? Is that the same as mortgage broker? Estate agents will often try to sell you this service but sometimes it's not worth it. I wonder why someone like you with your good financial standing would need a mortgage adviser?

I'd get on the phone directly with HSBC. Happy to stand corrected but a lot of banks can't compete with them on their mortgages.

EarthSight · 26/08/2021 18:08

@LBOCS2

Is your mortgage advisor one connected to the sales office? I presume it's a new build if you've had to put down a holding deposit?

If so, switch advisor - get a proper whole of market independent one, or go to one of the big firms. In my experience the ones tied to your EA or new build sales team concentrate on mortgages which have the highest commission for them rather than finding the best deal you're most likely to achieve.

This
Gwenhwyfar · 26/08/2021 18:11

" If he gifts you the money and then he goes bankrupt or has to go into care, there are circumstances where you could be forced to pay the money back (regardless of him not wanting you to)."

What are these circumstances please?

Lweji · 26/08/2021 18:13

Do you already have the gifted money on your account? Or is it supposed to be transferred when you buy the house?

Could the lender be concerned that the person gifting the deposit might back down, or claim possession of part of the house at some point?

TatianaBis · 26/08/2021 18:15

The point of brokers is to know the market, shop around, get you the best deal and the best interest rate.

You don’t have to pay for them upfront though, they normally take commission when the mortgage goes through.

Talia99 · 26/08/2021 18:16

@KateonSkates, because they ask and lying is mortgage fraud and carries a prison sentence.

Aroundtheroaringcandle · 26/08/2021 18:26

Keep at it, don’t give up! We got a decision in principle then were shocked when we were turned down by the first lender. However the broker went back and found us another lender. I felt just like you did but it came through in the end and we bought the house - hang on in there, it could still happen, just keep going back to your broker and exploring why it didn’t work out this time, look for other lenders, etc. Just keep going!

Hopeisnotastrategy · 26/08/2021 18:26

This sounds like it can easily be sorted on the facts you've given OP. Another parent here who's gifted deposit to DC and just had to confirm it was a gift. Don't despair.

abw94 · 26/08/2021 18:36

My first mortgage had a gifted deposit and was accepted no problem - it's probably the lender.

Don't let this get you down, I work for a new homes company and the amount of mortgages that get declined is a lot more than you think and it can be for such stupid reasons. If your mortgage adviser is good they will look at alternative options.

We used the mortgage brain for our last mortgage, fantastic service and they don't charge you for using them.

At work we use RSC and Acumen Mortgages, again they don't charge you for using their services.

SunnySideDownBriefly · 26/08/2021 18:38

Keep the faith! We had the same situation and it was really the Broker's fault because they should have known the lender would have a problem with that. You're paying the broker for their expertise so it was really a mistake on their part.

They will find you a mortgage...you just might not get as good a deal but then that deal wasn't right for you anyway.

Good luck! It will work out.

3luckystars · 26/08/2021 18:45

Don’t give up!!

MrsKoala · 26/08/2021 18:47

@Gwenhwyfar

" If he gifts you the money and then he goes bankrupt or has to go into care, there are circumstances where you could be forced to pay the money back (regardless of him not wanting you to)."

What are these circumstances please?

We were given money from fil then he needed care years later for something he wasn’t diagnosed with when he gave the gift. We were told by social services that we owed the money back as it was deprivation of assets. This is now becoming more common and could be a reason mortgage lenders are cautious around these kinds of gifts.

Another reason of something like this I’ve heard is you have to show you have the capacity to save money in case of any future issues and if you get given the deposit you can’t really save and can only cover the mortgage- which when you are a home owner often isn’t enough if interest rates change/things go wrong etc.

Our mortgage broker told us lenders are getting more and more risk averse due to the above 2 things.

GnomeOrMistAndIceGuy · 26/08/2021 18:55

Hope you get it sorted OP. I got mine with Natwest with 100% gifted mortgage. (Had a private arrangement to repay them, but we did provide a letter for the bank and they accepted it without question.)

Jangle33 · 26/08/2021 19:00

Why on earth are you paying for a mortgage advisor? I strongly suggest you do a bit more research on this and more to the point why are you paying for one who seems absolutely rubbish?!?

Scarlettpixie · 26/08/2021 19:06

Don’t give up OP. I know it is 11 years ago but I had a mortgage advisor tell me my mortgage application had been turned down as the Nationwide had (just at that time) stopped accepting tax credits as income. He told me no one would give me a mortgage now. I was a single mum working part time with a decent deposit from a previous sale.

After an initial panic, I rang two well known lenders, Halifax and Northern Rock - both of whom were more than happy to lend me the money. In fact they would have lent me much more due to my excellent credit rating. I went with the Halifax.

I would never never trust another mortgage advisor. If I had listened to him, I would have stayed renting and my mum who was moving in with me would have ended up in care 2 years sooner.

GlamourSpider · 26/08/2021 19:07

Hey OP, just wanted to say I had something similar with my first mortgage. I got an offer in principle direct via a mainstream lender which they then refused to honour (as I was young so had no credit rating). I then contacted an adviser who was able to secure a mortgage from a lesser lender at a slightly higher interest rate. Fingers crossed your adviser will be able to get something sorted for you.

annacondom · 26/08/2021 19:24

Keep trying different lenders - they have different rules. Don't give up!

Tara336 · 26/08/2021 19:28

Is it worth going with a different lender? We had an issue getting a mortgage because I already own a property outright and all my details are registered there while DH was registered to the property we were renting. Our financial adviser said with some lenders using a computer to decide yes or no to the mortgage that any slight anomalie will result in a no despite you being more than able to afford the mortgage, we went with a different lender who actually has a human being make the decision and was offered the mortgage immediately

Original poster
thebiggestloserinthenorth · 26/08/2021 19:32

Thanks so much for all your replies/advice.
To answer a few questions, deposit 70% gifted, 30% my own savings.
I am so new to this & so grateful for all your advice.
Yes, it's a new build - was immediately referred to this mortgage broker by the sales team but they do have great reviews online...
They are saying they have 'one more lender to try' - what happens if they say no? Would I then get my £250 refunded? Also worried I'll lose the flat as it's being held on the basis that I have this decision in principle
So stressed! Anyone for a glass of wine? 🍷

OP posts:
SpeakingFranglais · 26/08/2021 19:35

Hi OP,

DD recently went through this, she saved 21k and was “gifted” 68k on a house at 207000.

Went through a broker, she has an excellent credit rating, no debts at all, no outgoings and we paid our nationwide mortgage off ten years early and her brother breezed a nationwide mortgage with only his own deposit but they told the broker they wouldn’t lend DD, I can only assume because of the gifted deposit. Both her and her brother had saved similar amounts but him with nationwide and her with Skipton.

Skipton accepted her straight away.

Who did you save your deposit with? How much? Are they the lender?

PurBal · 26/08/2021 19:40

You paid the broker before the sale completed?! That’s a new one to me. This is on the broker to fix.

Mayjane5 · 26/08/2021 19:40

Hi this happened to me lender wanted to see that I could save and put in my own money too as well as the gifted deposit, so I saved 5% and they were happy with that. With everything going on lenders have become very strict. Try another lender your broker should tell you the reason why you got declined, good luck

WutheringTights · 26/08/2021 19:44

This article is very useful and from a trusted source.

www.which.co.uk/news/2020/08/which-banks-allow-first-time-buyers-to-be-gifted-deposits-by-their-parents/

TatianaBis · 26/08/2021 19:48

^Yes, it's a new build - was immediately referred to this mortgage broker by the sales team but they do have great reviews online...
They are saying they have 'one more lender to try' - what happens if they say no? Would I then get my £250 refunded? Also worried I'll lose the flat as it's being held on the basis that I have this decision in principle^

I would ask for a refund if he comes up with nothing. He may not agree though.