Santander....

djbyrnie

:mad:¨
Hi today me and my girlfriend booked a day off work to organise a mortgage.

The mortgage is for the house i´m currently living in(my mum + dads house). The sale price will be 140,000, but with the house worth 180,000(discount from mum +dad), and our deposit of 16,000 santander said yer that´s fine you´ll fall into the 25% deposit bracket and offered us a mortgage.

So after a full day of being on the phone and signing paperwork,ID checks etc. all was well until a phone call on the way home.

"hi sir, i´m really sorry but we cannot offer you an undervalue purchase because you´re not married" !!!!!!! so they let me waste a full day 2 trips into town and then tell me no.

Anyway we need help, does anyone know a mortgage company that will see our gifted equity as part of our deposit, so that we can secure a decent rate?

we´re first time buyers btw, cheers,


Dan.:D

DVardysShadow

I find it unusual in this day and age that a lender would refuse a couple for not being married. I thought that people got outraged about lenders saying that sort of thing in the 1960's and it had been done away with?

What about a gay couple? Is there some indirect discrimination in this policy?

Thrugelmir

Where are your Mum and Dad going to live?

GMS

Is it your parents or your partners? Will you both be party to the mortgage?

ChrisEvanson

It's Santander... They are absolutely awful. I avoid them like the plague these days after numerous bad experiences.

sockpuppet

Thats odd. I wasnt aware they had changed their criteria (?). Have never had any problems with Santander before as long as you are both on the mortgage application and the 'gift' is from parents of one of the applicants.
Not sure if it differs if it is a 'sale undervalue' from a 'gifted deposit' will have to go and have a look.
Never seen any mention that a couple must be married before

sockpuppet

Hmmm I cant see that there have been any changes in their criteria and have never had mention that a couple must be married before.

I think you need to double check that information

As normal, for a sale undervalue the parents 'gifting' cannot reside in the property if not on the mortgage and the relative (ie you or your gf) must be on the mortgage if it is their parents.

It also states in their criteria:
Undervalue transactions
Where the purchase price is within 80% of the value, we can

consider applications using LTV based on the purchase price of

a property below its market value, subject to the relationship

between vendor and purchaser meeting our requirements.

Dave_Ham

This does not make sense, although nor does many of Santanders current policy changes.

I only use them for straighforward cases now as too nervous they will boot out anything they do not understand or like the look of..

In any case, just save your time off and see a broker in the evening or weekend. They will be able to piece this together and ensure you achieve a decent rate (at 75% probably better than Santander anyway) so see it as a blessing..

There are lenders that will accept this situation (subject to a few unknown variables) like where Ma and Pa will live and they are "gifting" it and not as a loan on the face of it...

Good luck

paulmapp8306

Im assuming mum and dad are downsizing, and using the £140k you are paying for the house to buy?

I cant see how they can turn you donw for not being mareried. My immediate rection is its descriminatory - but _1 for using a mrtgage advisor (no fee obviously).

djbyrnie

Mum and dad have split up, dad doesn't live here anymore and my mums moving out/ downsizing. It'll just be me and my girlfriend in the house. I cannot believe they turned us down after getting so far through, the funds were prebooked !!!!!!. Both our credit scores are good, what bank/ lender would do this for us? At a decent rate of course around the 4% fixed mark
Feel really let down, like were not going to be able to get anywhere without getting ripped off.

Dave_Ham

Whilst I sympathise with your plight, lets not forget it is you trying to do something slightly unusual.

The banks reward lower loan to values as they are risk associated and therefore lower risk when someone has saved, or previously paid a mortgage.

This is not the case here and you will find the best buy mob on a rates basis will not be happy with this.

Re-read this forum and the house buying ones and there are many people much, much worse off and disadvantaged much more that 1/2 a day off work and a bit of a let down.

People are moving home in a day and then things breakdown with kids, schools and £5-£15k riding on the move so think you should have a reality check.

Rant over - there are lenders that will do this, suggest you get on the phone to them or a broker - however would probably improve on your bedside manner.

Good luck