Problem arisen with what is classed as basic pay

shirtbuttons

Should read a Problem arisen with what is classed as net pay (not basic)

We made a mortgage application with Santander middle of October. During the first call there was an issue over my husbands take home pay as he is in the army and we are currently paying rent, CILOCT, and rent for a garage at source. We had to fax payslips so that the underwriters could establish that these deductions could be included in his net pay. A few days later we were told that it was okay and a combined figure for our basic salarys was sent through on all the forms for us to sign. Less than a week later we received a letter saying our application had been declined and when I rang the call centre they said it was that my husbands salary was not as high as we had declared.

I submitted a letter of appeal on 1 November and attached pay statements (with an explanation of deductions), latest endowment reports, pension lump sums for both of us. The mortgage is interest only and repayment. We were asked for further info on pension contributions and endowment payments, all supplied by return. Didn't get an update so had to chase them twice, each time they told me it was being dealt with by the consultant before being resent to the underwriters. Last Thursday morning I was told that it was with the underwriters and a response from them should be back by Friday afternoon. No letter on Saturday so I rang first thing yesterday to be told that our application had been declined due to take home pay!

My husband has another deduction - 10% of his net salary is sent to his building society account via BACS. This was all explained in our letter of appeal. I have explained that this is a voluntary thing and he could stop it at any time and probably will once we have the mortgage. The consultant said that she understood that but the underwriters have a strict criteria and there was no proof that we will stop the payment. Sadly if they had told us this was an issue (over us saving money:mad:) then we would have stopped doing so last month. Our application is now on hold until we are able to produce a new payslip without this deduction, which will now be the end of December.

We went to Santander for the mortgage as I have banked with Santander for over 20 years, have had 3 mortgages with them (the last was redeemed in June when we sold our houue), the proceeds of that property are in a Santander Esaver and I also hold an ISA with them. I had thought it would be easier to stick with them as I know many don't seem to like interest only of which the bulk of our application is.

I don't really want to start looking elsewhere as I'm concerned that this could effect our credit rating (no issues on it) if we get declined elsewhere. This just seems like maddness, we have cancelled the savings deductions but having already had a problem with them over rent deductions it makes me worried that come the end of December they'll find another problem.

Has anyone come across this before?

kingstreet

Your loyalty is admirable, but completely misplaced.

I'd contact an independent or whole market broker who will get this issue resolved before making an application. You may even get a better deal.

You've only had one credit search so far, another one to secure the mortgage you need will have little, if any, impact.

poppy10_2

shirtbuttons wrote: »

We went to Santander for the mortgage as I have banked with Santander for over 20 years, have had 3 mortgages with them (the last was redeemed in June when we sold our houue), the proceeds of that property are in a Santander Esaver and I also hold an ISA with them. I had thought it would be easier to stick with them

Bad idea. As suggested above, go to a whole of market broker. Santander will only screw you around.

Wh05apk

Abbey tend to be a bit ott in taking anything showing on a payslip as a deduction, I've had clients whose employer bills them through their payslip for car parking etc, and abbey have deducted this as a commitment - the idea of having a surplus after paying the mortgage is to pay for items like living expenses and.....................car parking!

shirtbuttons

Thank you for your suggestions. Obviously made a mistake thinking our long history, loyalty with Santander and secure employment (well at least we thought so) would have made our application pain free!

Having searched on this forum it would appear that others have also been disappointed with Santanders attitude towards their customers.

I was concerned that this might have effected our credit record but now we will contact a broker and hopefully get a mortgage elsewhere.

Thanks again.

kingstreet

shirtbuttons wrote: »

Obviously made a mistake thinking our long history, loyalty with Santander and secure employment (well at least we thought so) would have made our application pain free!

From a personal point of view, I'd say that's how it should be.

Sadly, the loyalty shown by customers towards businesses these days is hardly ever reciprocated.