Refused mortgage by Santander

fixjlba

Hi hope someone can help as panicking a bit at the mo

Have had a mortgage with Santander for the last 8 years. Just sold my house and as i have 2 more years to go on a fixed mortgage deal telephoned them and got a mortgage agreed in principle including porting my original mortgage and a 2 year fixed deal on the additional. I have had the 1 half hour telephone interview and was told all credit checks are fine.

I recently sent my wage slips in which show i earn about 2400 a month. On the phone the man said this can only be shown as 2300 as they do something weird about taxing after or before my pension is taken out. Not quite sure what that means but he didn't see it a a problem.

Got a letter today saying they have turned down my application. Obviously panicking a lot as have got a sale agreed on mine and a new property Can't ring the main office until Monday but phoned their advise line who said that it says i was turned down as my wage slips say 2200 which they clearly don't!!!

Anyone any idea whether this is something that can be sorted quickly or am i better just paying the £6000 early redemption and trying to get a quickish mortgage from someone els.
Thanks

Thrugelmir

How much are looking to borrow?

What's your gross income?

What rate is your current mortgage on that you are looking to port?

Is your mortgage interest only or repayment?

May give an indiction for the real reason for the decline.

Dave_Ham

Hi there,

Santander are causing a fair amount of grief at the moment, most being of their own doing.

£6k is clearly a lot to suffer, so I suggest you plonk yourself at the biggest local branch and demand to see the Mortgage Advisor.

At this point I would not declare your hand, just say that you have an existing mortgage and have sold and bought a new one with offers accepted at the weekend. That will get them jumping into action given their sales targets.

Once in the room, then tell of your situation.

I would only be speculating about your income issueson 2200-2400 a month although the people on the telephone have consistently got things wrong for new clients of mine fed up with their inefficiency.

Worth noting (and they may not have been brave enough to tell you) that Santander changed their credit criteria this time last year.

Previously they were flexible with historic adverse, but changed to allowing absolutely none.

The Advisors in branch are usually ok, so definitely get in front of one.

Good luck

fixjlba

Hi Thanks for the quick replies. Looking to borrow £149000 on a £187000 property. I earn just over £42000 a year so don't think the problem is there. I've got a repayment and want to carry on. I'm keeping with the higher rate on my old mortgage and was getting a slightly lower one on my new bit.

Will definitely be at a branch and on the phone on Monday.
thanks again

Thrugelmir

Dave_Ham wrote: »

Santander are causing a fair amount of grief at the moment, most being of their own doing.

Commonly called. There's other places to lend our capital to. On which we'll earn a better rate of return.

A sign perhaps that the property credit boom is well and truly over.

bigadaj

OP - do you contribute to your pension by salary sacrifice, as this could be their issue. The reduction in NI is very worthwhile but to gain this you are effectively agreeing to reduce your salary. An issue with this can be that any lender will take your after contribution income as your salary, not pre.

Thrugelmir

fixjlba wrote: »

Hi Thanks for the quick replies. Looking to borrow £149000 on a £187000 property. I earn just over £42000 a year so don't think the problem is there.

Do you have any dependents?