Mortgage denied

downwithsantander

Hi.
I am new here and partly looking for advice. The other part is to express my frustration at the banking system or as my username reflecs, SANTANDER.

I know that in the current climate you have to be grateful to just have a job and if you have a house and can keep up with you bills so much the better. No complaints there


Recently my wife and I went to Santander where we have our own mortgage and a buy to let mortgage with, for another mortgage as I have been working 2 yrs a 4hr daily rtn commute and as we have equity in both properties and good jobs, decided to invest in a second home where I work so that I can reduce my commutes and at times that I work at the wkend, my wife and 3 kids can come.

We have never had debts (other than having 2 mortgages which we always have pid on time) and no negative credit score. Both the houses we currently own are in equity so they gave us a mortgage certificate( we saved to put in a 25% deposit) after which we put an offer which was accepted.

We were after this turned down twice by Santander where appart from the 2 mortgages, I have my current and credit card account(paid in full monthly) Y have my ISa, so have my wife and the one we set up at the birth of each of our 3 kids.

The first time we attempted a joint mortgage approach but although they agreed in principal with everything ( at the branch) and gave us the certificate, later it was turned down as the buy-to-let property that we own( long term tennant) has less than 25% equity as you would expect with the current financial situation. NO OTHER REASON

We then applied as the branch suggested just in my wife's name ( our own homwe is in her name and in that one equity is much greater than 50% as only small mortgage left. Again were were accepted on principal only to once again be denied later.

On this occasion they ( not in writting, of course) said that they could not be guranteed that we weren't going to rent it out which essentially was equal to telling us DENIED FOR LYING eventhough they can see I work 2 hours from home and 4 bed semi detached ( one room tiny as often the case) looked suspicios for a family of 5 (ohhhh, and a dog)

They as if we were stupid also said, why don't you use all your savings ( as if 25% deposit wasn't enough) and use them to buy the house, but we are waiting to sell our own home to buy a site and as many times told that is a different ball game at the time of mortgages,etc..

Now, after all this ranting, I wanted to ask if anybody knows that they can basically do whatever they want and that is it even though no true(we think) reasons are given and can we take it further as not only we feel it is unfair but they insult us in the process.

Needless to say we are looking elsewhere, but it is the principal and the fact that they have wasted over 1 month of our time and may end up loosing a property sale agreed after they gave us the useless certificate

WE WOULD LOVE FOR MARTIN LEWIS TO ALSO SEE THIS ( I KNOW IS HARD TO SEE ALL MAILS) AS WE KNOW FROM LISTENING TO HIM IN BBC 5 LIVE, THAT HE IS QUITE AN ADVOCATE OF THE CONSUMER AND GETS VERY ANNOYED WITH BIG INSTITUTIONS DOING BASICALLY WHAT THEY WANT, ESPECIALLY AS THE WHOLE THING STARTED WITH THE BANKS.

having said all that, any help, thoughts or advice would be greatly appreciated

Grimbal

Would you not consider selling your current family home to buy another closer to your work?

maninthestreet

So you currently own 2 properties, both mortgaged, and now want to but a third?

MobileSaver

downwithsantander wrote: »

but it is the principal

The principal being that you want to own three properties when in reality you cannot even afford one without a loan from the bank?

I don't know what you are on but can I have some please?

The solution is obvious - sell one of the existing properties: You don't need and cannot afford to own three properties.

ILW

MobileSaver wrote: »

The principal being that you want to own three properties when in reality you cannot even afford one without a loan from the bank?

I don't know what you are on but can I have some please?

The solution is obvious - sell one of the existing properties: You don't need and cannot afford to own three properties.

Did nobody tell you that in 21st century UK you are considered a complete failure if you do not have a "portfolio" of at least 3 properties.

jimjames

maninthestreet wrote: »

So you currently own 2 properties, both mortgaged, and now want to but a third?

Both mortgaged and with insufficient equity.

A bank is a commercial organisation. If they think it is too risky they won't lend - at least not in the current climate. You can see why they would think that you want to rent the property if you already have a BTL.

If Santander won't lend why not try someone else? They aren't the only lender around.

Flugelhorn

i did this once but only one of the properties had a mortgage on it (90% LTV ho ho at one stage ) - the other 2 I owned outright.

Would never have done it with mortgages on all 3.... very risky.

Best to a) move - b) try to work nearer home - kids will get fed up of travelling to a different place every weeked

Mobeer

You have a buy to let property with less equity than the bank is comfortable with you having and are now seeking funds to buy another place. You already rent out a property and now want another one, in addition to your own home. You describe the new place as an investment, not a home.

All this looks very suspicious to an outsider, even though you know better.


I suspect though that if you had more than the 25% equity that bank wants in a buy-to-let for both 2nd and 3rd properties then you might do better. Or if you moved your whole family closer to work and sold your current home.

Dave_Ham

For starters, Santander are out getting amongst it and upsetting many people.

Luckily, you are early enough in the process/chain not to be financially disadvantaged by their underwriting.

Santander are also one of the more inflexible lenders at the moment, but what you are asking for is not easy.

You are almost asking a bank to trust you, that you are buying a second "marital" property and will not be renting out.

Depending upon what value of deposit you have, credit score, income and commitments there may be another lender that will consider this.

Likely to be best with a broker...

Good luck

James_N

maninthestreet wrote: »

So you currently own 2 properties, both mortgaged, and now want to but a third?

What, precisely, is wrong with that?

James_N

use a different mortgage supplier. Use a broker, on an on-line agent like London and County.