Declined for 2nd home 1st home -ve equity

carneety

Hi all, can anyone offer any advice? I've just been declined for a new mortgage by Santander to purchase an additional home for a family member - they are including the value of the retained home where I will be continuing to live (which is in quite a bit of negative equity) in the LTV and have declined it because it is now well over 75% although the LTV for the new purchase is under 75% - all the other financials are ok and the mortgage was agreed in principle initially. My exisiting mortgage is with Santander and obviously I am locked to them for that, is this situation likely to be a problem if I re-apply with another lender? My mortgage advisor at Santander is appealing the underwriters decision but I feel sure the outcome will be the same

Thanks for any help?

Steve

Thrugelmir

If you are party to 2 residential mortgage. Then affordability will be a major consideration by the underwriters.

Rather than purchase a second property better to address the problem of negative equity in property 1 first.

Simon_gloster

You will have an affordability assessment based on your own mortage plus the 2nd home. If the LTV is above 75% and they dont lend 2nd hokes to existing customers above that then the underwriter referral is a complete waste of time....as thrug says, pay do house 1 then they may change their mind.

Dave_Ham

Depending on the other details, there are other lenders that are likely to be more sympathetic to your circumstances.

Appeal talk is rubbish, the advisor just probably felt bad as you were a nice bloke and therefore gave you some false hope face to face. Will probably e-mail or call you up to give you the bad news.

Good luck

carneety

Dave Ham - thanks for your positive reply, I was really only enquiring would there be lenders who would possibly extend me the mortgage - as I said in the original post all the other financials are fine. I have a contact who is a whole of market adviser so I'll give them a shout, I should have done that anyway but thought wrongly that using Santander might be more straightforward given my mortgage history with them.

Thanks