Opinion wanted about Mortgage application

jaynepoppy

Wondered if you could give your opinion on this matter and help us make a decision as to whether we take this further. We had a mortgage with Santander and decided to move house, they told us at that point that we could borrow £15,000 more than our current mortgage with them. When we found our house and made an application for the SAME amount of our current mortgage we were turned down due to their current lending policy. We have never defaulted on a payment or even been late paying so were really shocked at their decision. We considered it to be a low risk mortgage as our LTV is 25%. As a result of this we have ended up paying an early redemption fee of £1,500 as we had to go to another lender.



We have written to Santander but they have twice said they were not at fault, and that they will not discuss the matter further. Do we have a compliant and should we take this further.



Thanking you

_Andy_

There is no valid complaint - you didn't meet their current lending criteria which is theirs to set.

jaynepoppy

Fully understand that, but we currently held a mortgage with them for the exact same amount we were asking for, it basically was just a change of address. Surely common sense prevails???

_Andy_

I'd agree with your sentiment but it isn't going to change anything or mean there's a legitimate complaint I'm afraid.

Thrugelmir

jaynepoppy wrote: »

Fully understand that, but we currently held a mortgage with them for the exact same amount we were asking for, it basically was just a change of address. Surely common sense prevails???

No not just a change of address. A new mortgage contract. An important technicality.

As with regards to Santanders responsibilities the clock resets to zero.

LTV isn't the only factor is assessing the risk. Its your ability to repay the mortgage month in month out. Chasing arrears and repossessing property isn't the market banks particularly wish to be in.