Declined to move mortgage to new property!

ceci_2

Hi, hope i can get some good advice ! We currently have a mortgage with Santander for 198k (20k) deposit,fixed for 5yrs. We put this property up for sale last summer and we have finanlly sold!!!!!! BUT!!!! We informed Santander about this and just presumed we could transfer our current fixed mortgage over to the new property 182k.
We got declined as they told us MR had a DEFAULT on his credit report.
This DEFAULT was put on the account unfairly by Next Retail and Barclays Partner Finance because they completely messed up the paper work!! they set up DD for 24 months instead of 36 so the DD was cancelled. We promptly got the DEFAULT lifted off MR account with a letter from BPF to say it was an error in their part.
The default got lifted 4 weeks ago and we have been advised by our branch that that was the only reason for the decline.Santander called today and said the application was declined again!!!!!!!!! its taken them 4 WEEKS TO LET US KNOW!!!!!!!!!!!!!! We have a ERC OF £7K TO PAY THEM NOW. Prior to all this we had an offer accepted and we have somebody moving in here 21st April!!!!!!!
I have a default on my account which is SETTLED but at the beginning of this whole application they said that wasnt a problem. We feel we are too deep into it all now as we are in the middle of a chain! Im absoloutly gutted. Do you think we will get another mortgage? and do Santander have the right to keep us hanging on for 4 WEEKS to tell us no once again, we provided them everything they asked for!!!!!! what more can we do?
Were in the middle of ivf also so just giving them £7k is not an option!!!!!
The lady who was dealing with our appliation in branch said she was completly gobsmacked and have adviced us to send a letter of complaint. is it worth it. im devastated!
Any advice ?

cx

Jojo1daffy

Have you exchanged? Could you go into rented accommodation whilst this is sorted? Will you get an equity back from the sale of your house? If you reapply in a few months do they refund the ERC??

If you make a complaint that could add another 6 weeks to the process. They might follow the process of sending you an acknowledgement letter within 14 days and then aim to get the complaint answered 4 weeks after that. Even then it may not go in your favour.

Lenders are being extremely cautious and picky. I have a clean credit file, sold my house last October after having a mortgage for 15 years with no missed payments. I went into a rented house because there wasn't anything i wanted to buy at the time. Now I've found a house, applied for a mortgage and been declined. I appealed over 4 weeks ago and still haven't heard anything. I understand your frustration completely!

ceci_2

That's shocking! I totally understand how they must be careful but c'mon! We can stay with family but the people are waiting to move on and typically the house is a dream house, location etc! I think we might just have to wave the 7k bye bye and hope that another mortgage company will accept us. We do have another property but have tenants there. I'm feeling sick with worry its all going to fall through. And yes I sent an email earlier to the complaints department at Santander. Maybe I should have left it? I usually so the wrong thing!

Jojo1daffy

It's hard to know what the right thing to do is when they put you under so much stress though!
Moving into rented and avoiding the stress of being made to feel like I had to rush to find somewhere else was a good move for me. I think if I had applied for a mortgage in the middle of all that and been declined and had to go through what I am now whilst in the middle of a chain might've been too much to bear. I lost quite a bit on ERC at the time as well, but I thought my sanity was more important. RBS (my lender back then) did say that if I applied for a mortgage with them within 3 months after completion I would be reimbursed the ERC. Santander may have a similar policy? So then you could reapply and appeal in your own time?
I hope it all works out for you - this mortgage malarkey is an absolute nightmare.

ceci_2

Yes they have offered us the 3 months payback but what's stressing us out more is that the house we're buying (a family friend selling privately) think all is ok!! They are waiting to move into an empty property themselves.3 months is too long. They will have to sell to someone els or els lose the house they want to buy. Mortgage company's just don't consider the mess everyone gets into. Surely they have to be more lenient to existing mortgage holders when trying to move properties. I have proof that the default was due to my cousin not keeping up payments on a mobile. As soon as I got wind of it I paid the balance in full! All this stress and upset for £210!!!!it seems as though Santander just want to take the 7k off us!

Jojo1daffy

Just found out what my decline has been about as well - equally ludicrous! I bank with the Co-op bank, have a Visa card with the co-op bank and applied for a mortgage with them - declined. The balance on my Visa card is 200 quid. In January it was 800. My credit file hasn't been updated correctly and shows the balance to still be 800 quid! Either the bank haven't informed Experian or Experian have messed up. All the same it's ridiculous that i have been declined for an apparently lacking payment history on a card that's with the same lender and they know that I've been paying it off 200 quid a month to clear the bloody thing! If this application isn't accepted soon I think I'm going to change banks.
The performance Santander are putting you through is ridiculous If the vendor is a family friend though - are you able to talk to them about this? I know it's embarrassing and difficult but putting them in the picture will take a big weight off you.

Thrugelmir

ceci wrote: »

Hi, hope i can get some good advice ! We currently have a mortgage with Santander for 198k (20k) deposit,fixed for 5yrs.

What's the purchase price of the new property? Is the mortgage on a interest only or repayment basis.

Wh05apk

Lenders are far pickier now than ever before, unfortunately with 1 default showing you will struggle, but with 2, I suspect it will be almost impossible, regardless of who is to blame, unfortunately lenders take the view that adverse credit follows borrowers around, you had one default now your partner has picked up one (albeit incorrectly) I currently have 2 cases I am trying to place for clients, both of whom seem to have a string of missed payments/defaults/bankruptcies, all of which seem to be justified, and not directly their faults, so I can see the lenders point of view.

Not sure where you can go with this, personally I would sit tight, save your £7k and let your credit get cleaned up then reapply, and accept you may lose both your buyer and the new property, although if you wanted to try another lender, speak to a broker and they may be able to place it?

ceci_2

Thrugelmir wrote: »

What's the purchase price of the new property? Is the mortgage on a interest only or repayment basis.

. The new property is 182.00. Our current property is on repayment mortgage. Thanks for the replies, on my phone so struggling a bit to keep up.

ceci_2

Wh05apk wrote: »

Lenders are far pickier now than ever before, unfortunately with 1 default showing you will struggle, but with 2, I suspect it will be almost impossible, regardless of who is to blame, unfortunately lenders take the view that adverse credit follows borrowers around, you had one default now your partner has picked up one (albeit incorrectly) I currently have 2 cases I am trying to place for clients, both of whom seem to have a string of missed payments/defaults/bankruptcies, all of which seem to be justified, and not directly their faults, so I can see the lenders point of view.

Not sure where you can go with this, personally I would sit tight, save your £7k and let your credit get cleaned up then reapply, and accept you may lose both your buyer and the new property, although if you wanted to try another lender, speak to a broker and they may be able to place it?

Thank you for the advice. Your probably right although we have had the 1 Default removed from MR's credit file completely so there's just the 1 on mine for £200! Which is all settled and has been for months. It seems really petty to me! We are meeting with a broker Tues evening. Totally get where your coming from when u say sit tight but We are completing THURSDAY! All packed and ready to go! I feel were too far into things. Feeling physically sick atm!

ceci_2

Jojo1daffy wrote: »

Just found out what my decline has been about as well - equally ludicrous! I bank with the Co-op bank, have a Visa card with the co-op bank and applied for a mortgage with them - declined. The balance on my Visa card is 200 quid. In January it was 800. My credit file hasn't been updated correctly and shows the balance to still be 800 quid! Either the bank haven't informed Experian or Experian have messed up. All the same it's ridiculous that i have been declined for an apparently lacking payment history on a card that's with the same lender and they know that I've been paying it off 200 quid a month to clear the bloody thing! If this application isn't accepted soon I think I'm going to change banks.
The performance Santander are putting you through is ridiculous If the vendor is a family friend though - are you able to talk to them about this? I know it's embarrassing and difficult but putting them in the picture will take a big weight off you.

Noway! That's terrible, its so hard to keep up with things! The vendors have been let down before due to a similar problem so the thought of mentioning this to them will make them run a mile from us I think. Its the type of house everybody loves in the village and it'll get snapped up in seconds. I know I should really tell them but I'm hanging on for as long as I can. They are hoping to to exchange first week in may. 3 weeks away! If I can get a mortgage with ANYONE ill be happy. I've been so down about this all.