Is this just Santander being too carefull

nicenswift

Hi,

Looking for a little advice.

I have a Mortage with Santander with an outstanding balance of £99,000.00 which is locked into a deal until march 2013.

My house was valued at 209,000.00 2 weeks ago.

Our plan was to sell our home and move to a house that is slightly more expensive (about 249,000.00) so I rang Santander about aditional lending only to be told that if I sold my home and paid off the £99,000.00 outstanding + the early payment fee £4000.00 and started with another mortage they would only be prepared to lend me £88,000.00 which is less than I have now bearing in mind my salary has risen by at least a few grand a year.

I am currently on 35K PA and have no outstanding CCards but do have a car loan for £190 a month.

Does this sound normal or are they just being to carefull these days ?

Many thanks for any advice.

Nicenswift

Burridge60

Yep. It is called lending responsibly and realistically.

The Banking Crisis was parked at the Banks' doors and since then they have been told to sharpen up and not lend irresponsibly.

They now lend based on affordability and as such now tend to lend less than they would have two or three years ago.

Don't sell up and pay the penalty you can surely port your mortgage to your new property.

GuidoT

All banks have tightened up their lending criteria.

£35K income and maximum loan of £88K is a bit rubbish, they do not want you as a customer, you need to look at other lenders.

Thrugelmir

nicenswift wrote: »

I am currently on 35K PA and have no outstanding CCards but do have a car loan for £190 a month.

Do you have a partner and children?

nicenswift

Thrugelmir wrote: »

Do you have a partner and children?

Yes wife has no income (Housewife) and 2 daughters 11 and 6

nicenswift

Burridge60 wrote: »

Don't sell up and pay the penalty you can surely port your mortgage to your new property.

Unfortunately if I cant borrow anymore money I shant be able to move house

Many thanks for taking time to help though

reissgirl

Don't give up before you try another lender!

DVardysShadow

nicenswift wrote: »

...
I am currently on 35K PA and have no outstanding CCards but do have a car loan for £190 a month.

Putting myself in the lenders shoes, it is possibly the car loan which does it. This loan says that you do not accumulate money, so there is very little margin in your finances - if the opposite were true, you would not need the loan. 2.5 times salary is a bit stingy however. I suggest that you work on saving enough to pay off the loan and have some savings besides. If your wife could take a job - even just a few hours it may also put you into a different frame for the LTV they think you are good for. Plus take a look at other lenders.

Meeper

Having the car loan and three dependent people in the house is the major factor here, along with the car loan. You may be able to borrow more if you extend the term as the approval is based on the monthly payments and your net disposable income (thus your ability to meet the payments).

Thrugelmir

nicenswift wrote: »

Yes wife has no income (Housewife) and 2 daughters 11 and 6

Then there will an affordability calculation for the fact you have dependents. Sensible lending practice in this difficult times.

If you can afford additional borrowing. Up the payments to your existing mortgage to reduce your mortgage balance and increase your equity.

Conrad

nicenswift wrote: »

Yes wife has no income (Housewife) and 2 daughters 11 and 6

I'm not advising you lie of course, but bare in mind lender lends you less the more children a person declares. Mind you Politicians and lawyers lie every day come to thinbk of it and even a Dentist I know lies in order to make more money from patients.