Approved in principle, declined on application - emergency tax code

csq

We have been approved on principle by Santander, and told that we should get the mortgage we wanted. However, in the meantime the bank all of a sudden started asking for all sorts of ID from my wife because she changed jobs, including her CV (!), to in the end actually decline mortgage, because she is in emergency tax code in new job, and earning temporarily a bit less because of this.

When they told us, they said they could reconsider if we could provide a payslip with the proper taxcode on it. We spoke with her employer and were told that the proper code would be shown on her next payslip, so we called Santander back. Now they are saying, that actually nothing would help, even her job contract or the proper tax code.

We are devastated. We feel like we've been lead astray twice. Once on the initial application, because when weren't told there could be problems because she changed jobs (apparently we were "borderline", they didn't tell us then!), and secondly when we were declined when they said that additional documents could reverse the decision (which we can provide!). Now they tell us that decisions like this can't be reversed because the system in computerised, even if we provide the additional required documents. If we can't go with Santander, we'll have to go with Nationwide, which has a worse rate and initial costs.

Do you think there is something we can do? Thank you.

ACG

Why would they tell you your borderline?
Are you sure you cant appeal it? Have you spoken with a manager or underwriter?

Why is your only other option nationwide? They have a 10 day turnaround time at the minute presuming they have everything they need upfront.

If you cant appeal then your only other option is to try elsewhere. It could be worth a chat with a broker - they might know of other lenders, the last thing you want to be doing is applying here there and everywhere.

csq

ACG wrote: »

Why would they tell you your borderline?
Are you sure you cant appeal it? Have you spoken with a manager or underwriter?

Why is your only other option nationwide? They have a 10 day turnaround time at the minute presuming they have everything they need upfront.

If you cant appeal then your only other option is to try elsewhere. It could be worth a chat with a broker - they might know of other lenders, the last thing you want to be doing is applying here there and everywhere.

It would be good to know we were borderline so that we could then investigate why, and perhaps take different steps.

We have spoken with the broker, who was the point of communication between us two. The appeal failed, we are going to try again.

nationwide is not the only option, it's just not as good. after nationwide there's also woolwich with the same rate - around 5.59 with large product/evaluation costs instead of 5.29 on Santander without any costs.

ACG

They wouldnt know it was borderline until it came to underwriting it. If you passed the credit check then it would have done some basic sums at that point which can either pass, refer or fail - if it passed then that could be down to the broker entering the net income as what you expect it to be rather than what it currently is or the it might have scraped through on the system.

It may have been a refer which was the computers way of syaing its 50/50.

Either way, if you have appealed and its declined i wouldnt hold my breath about it being overturned on a second appeal (for the record i agree with you and its a daft decision). From what ive read on here, Santander appear to be not the happiest to lend at the minute and unless you have a case that is nice and easy they seem to be declining a lot.

You have other options available to you, thats the main thing. If your in any sort of rush i would be getting them applied for now and i would also factor in nationwides 10 day turn around time.

csq

ACG wrote: »

You have other options available to you, thats the main thing. If your in any sort of rush i would be getting them applied for now and i would also factor in nationwides 10 day turn around time.

I understand that what we should be happy first and foremost is that we are able to proceed with other lender, just to get ourselves on the property ladder, and we will. It's just that taking the third or fourth best deal on the market, just because of some silly arbitrary decision, does not seem fair.

harvey115

csq wrote: »

I understand that what we should be happy first and foremost is that we are able to proceed with other lender, just to get ourselves on the property ladder, and we will. It's just that taking the third or fourth best deal on the market, just because of some silly arbitrary decision, does not seem fair.

you are thinking it incorrectly.

When you get refused on your first or second selection and have to go with the third one. That is infact the best deal in the market available on your circumstances. So you have got the best one you could get according to your research, I would say.