Santander mortgage declined help??

donyboy100

Hello all advice would be appreciated

Here's where I stand:

I have no debts on credit cards and 1 loan of £250 with abbey and 1 which my partner pays me for of £105 with Barclays. There is 3 years left to run on each for cars.

I earn 28000 a year plus approx £5000 of regular overtime, I am in a very secure job and cannot currently be made redundant. I am paid four weekly so get 13 payments.

My partner earns 13,105
I have never missed a payment on my mortgage or loan and have been with abbey for 10+years and my account is always healthily.

I have no other outgoings etc.

I'm selling my home with an existing abbey mortgage for £125000 and buying a home in need of modernisation for £123000 which I know will eventually be worth £150000 plus.

My current mortgage with abbey is part and part £57912 interest only which has an Isa for the capital for 10 years and is on track as of Jan 2011. There is also part repayment on £9000.

I will be putting down a £33000 deposit from my equity from current sale and thus requiring an extra £32089 on top of the £57912 taking my mortgage to £90000. Keeping my term at 15 years.

Been told my repayments would be £533 plus my Isa of £95 a month, which we can easily afford.


The loan was agreed in principle over the phone and was going to be fast tracked until I mentioned my fianc!e is paid cash and has handwritten payslips. This then involved a call to underwriters who agreed to look at it.

I sent all documents to Belfast including various letters from her employer on headed paper stating what she was paid with deductions and year to date totals and evidenced the fact that give or take a few pounds she had deposited this in her bank account every week and sent bank statements. I also sent a letter explaining all this and giving various contact numbers to assist.

The documents arrived last Thursday and instead of anybody reading the notes on the file with regard to the U/c looking at it, they kept it on hold for 2 days before I called and asked them to look at the notes. Finally faxed to U/c in Glasgow on Monday lunch and awaited them letting me know. After not hearing anything, I telephoned on Wednesday to be told that it had been declined because of the payslips on Tuesday!!!! nobody had bothered to call or advise me.

I have called and asked to be re-contacted and they have stated within 24hours (3 hours to go) my advisors phone seems to constantly go to answer machine.


I appreciate the payslips but it shows the money she is paid, the bank account shows the money going in and is healthy, and she is never overdrawn.

Is it worth appealing? Did the underwriter even look at it properly?

I could just try on my own or pay the early settlement figure and move to a better lender.

Really has changed my feelings towards Santander.

Any help or advice would be really appreciated.

originalmiscellany

Not specific to you but the principles are (and I know you know these already)...
a) It's a bad time to be a customer with higher than historical interest rates on mortgages
b) Banks can afford to be very choosy with who they lend to, and ANY weakness will mean you get rejected.
c) Banks are a business and aren't a charity; they will hammer you for anything you do wrong- there is no loyalty to users like you or me - we're just pawns in their profit game!

Stats are the issue:
Your combined salary (pre overtime) = 28 + 13 = 41k = less than 2.5 times joint salary - should be comfy.

So no direct help, but just sympathy.

Thrugelmir

donyboy100 wrote: »

I'm selling my home with an existing abbey mortgage for £125000 and buying a home in need of modernisation for £123000 which I know will eventually be worth £150000 plus.

My current mortgage with abbey is part and part £57912 interest only which has an Isa for the capital for 10 years and is on track as of Jan 2011. There is also part repayment on £9000.

I will be putting down a £33000 deposit from my equity from current sale and thus requiring an extra £32089 on top of the £57912 taking my mortgage to £90000. Keeping my term at 15 years.

You are selling house for £125,000. Existing mortgage £67,000. So equity in region of £58,000.

New house £123,000. Required mortgage £90,000. Net equity injected £43,000. So allowing for equity released where does £15,000 disappear to?

Wh05apk

Thrugelmir wrote: »

You are selling house for £125,000. Existing mortgage £67,000. So equity in region of £58,000.

New house £123,000. Required mortgage £90,000. Net equity injected £43,000. So allowing for equity released where does £15,000 disappear to?

irrelevant! presumably moving costs, held back for work on house?

The issue here is that it is policy they will not accept the payslips, nor will they do employers references anymore.

Looking at the figures you should just about be able to do it based on your sole income, suggest you speak to the call centre telesales person (they are not advisors!) and ask them to refer on this basis.

Sadly this is a case which should have gone to a broker, who could now be chasing for you.

donyboy100

The extra cash is to improve the property thus raising the value. Im still awaiting the call, but will do my best to persuade. i still may appeal... LTV is 73.17%.

Shame really if i end up leaving them.

Thrugelmir

How did Santander arrive at £95 for the amount you need to pay into an ISA to fund the capital balance on the mortgage?

donyboy100

Thats the figure I've paid for the last ten years for my mortgage ISA for the £57912 I originally borrowed. The ISA is with l and g and was all done through a financial advisor ! The plan as of jan 2011 is on track to repay the target amount ! Still awaiting a call

donyboy100

Still awaiting a call ? They say my advisor should call before 4.30pm?? My partner has been to HSBC (her bank) and they will lend her the money to consolidate the car loans, this will actually end up saving us money (cheaper rate). This would mean I think that I have no loan commitments on my wage and the whole amount could be used and should give me the figure i want? A i correct in thinking this? should i hold off with app in my name before the loans are shown as settled on my credit file ?

Advice appreciated please

GMS

Handwritten payslips are literally not worth the paper they are written on, and deposits of cash into a bank account are no indication whatsoever of an income. Cash paid in could be from any source.

If a bank cannot verify where your income is coming from then they cannot reponsibly lend money to you.

donyboy100

I have spoken to santanders advisor again! It seems the only way they will accept is with printed payslips from my partners employer! He said you we were on fast track until handwritten payslips were mentioned! My partners employer is purchasing software to sort this out and they allegedly accept them when they are sorted:-0 pigs might fly!:A:(:hello::whistle::money:

Wh05apk

Have you checked to see if they can do it based purely on your income, it looks like you could be close?