Please can anyone give some advice???!!

DonnaJamieson

Offered mortgage in principal by santander through a broker 2 weeks ago then last Thursday it was passed to underwriter who approved it & it went to valuation on Friday... Monday morning broker said everything was fine and final offer on way. Mon afternoon this changed and internal audit had declined on changes in credit score - nothing has changed apart from the santander search. We have complained to Financial obudsman, the broker can get no one from santander to speak to us.

We are putting a hefty deposit down 25% = £40+ k and the house is valued £20k over the purchase price!

Is there anything we can do???!!!

kingstreet

Sort out a new mortgage and fight this in the background. Get your broker working on alternatives so your purchase isn't held up.

Order copies of your credit files from the Credit Reference Agencies to check all the information. I don't believe there will have been a significant change, but you need to rule things out.

FOS is there for when you've exhausted Santander's complaints procedure, so the first thing to do is to make a formal complaint to them, preferably in writing. See if your broker will help you put it together and fax it to them for you.

Things like this happen and you have to deal with them with the help and support that's available to you here and through your broker.

DonnaJamieson

The concern is that Abbey have searched now 3 times in the last month... that has brought the credit rating down... and is now sitting in the high end of the 'poor' section.
It is so frustrating. The broker is now suggesting GE Money. Dont know what to do for the best.

Conrad

Donna, there are litteraly infinite permutations so no one could possibly guess as to the reason for the decline. For example one might use an incorrect job title in the original application, or forget to have mentioned an app declined 2 years ago - no point you responding to these two possibilities, because as I say there are endless possibilities.
I'd be willing to bet your broker is not fully experienced and made some subblte error - even a small thing like putting you had no kids (to improve affordability) but then the lender calling at home to be greeted by a childs voice - as I say endless possibilities.

If your broker is careful and always plans for the worse (all good brokers are cautious and plan ahead for every possibility) then you should have no problems.

DonnaJamieson

So where do I go from here Conrad, what would you suggest? Should we pursue abbey or start afresh? New broker?

Thrugelmir

DonnaJamieson wrote: »

Should we pursue abbey

Hard to see what there is to pursue. As you've had no formal offer , or in fact written communication from Santander during the application process. Santander are within their rights to decline your application without giving reason.

Maybe switch to a reputable mortgage broker for advice. A recommendation to switch to GE Money suggests there may be other issues, as they target a given segment of the mortgage market.

kingstreet

If they'd failed AIP, or been kicked out at full app, I'd understand the GE reference. They passed both and failed at audit, which suggests information which doesn't tally, or make immediate sense, under closer inspection.

catieeb06

I agree with Conrad.

Get your broker working on a further application. Or alternatively, if you have paid no money to them- you are within your rights to approach another broker.

Unfortunately Santander can decline to give you a mortgage, they are in no ways legally bound to do so. The 3 searches in a month makes me think that your broker has been doing something behind the scenes that they've not made you aware of. Santander should only credit search once and even when they do full and final underwriting, this doesn't produce a further search.

When it comes to a decline due to internal audit, lenders are very reluctant to inform you why the case has declined.

Is there a reason that you're not coming on the mortgage?