declined a mortgage by santander

catgaughan

myself and my husband were declined a mortgage from santander. the reason they gave was when fixed rate gone we wouldn't be able to afford the £1600 payments a month. However we were going to get fixed rate for five years which would have made payments £1100 and in five years we will have cleared loan that we are currently paying £400 a month for a loan. do all lenders do the same?? we have worked out our expenditure and have £500 spare a month but bank not considering this as state still not enough to meet mortgage payments!! Any advice really welcome, have got a mortgage adviser coming on Wednesday, but if all lenders same there will be no point!!

catieeb06

catgaughan wrote: »

myself and my husband were declined a mortgage from santander. the reason they gave was when fixed rate gone we wouldn't be able to afford the £1600 payments a month. However we were going to get fixed rate for five years which would have made payments £1100 and in five years we will have cleared loan that we are currently paying £400 a month for a loan. do all lenders do the same?? we have worked out our expenditure and have £500 spare a month but bank not considering this as state still not enough to meet mortgage payments!! Any advice really welcome, have got a mortgage adviser coming on Wednesday, but if all lenders same there will be no point!!

Hi,

Unless your loan has less than 12 months to run on it, all lenders will be the same. They have to stress test your income and outgoings and make sure that if you paid off your loan and simply took out another loan for a further £400 a month that you could still afford to live etc.

Talk to a whole of market broker and see what they can do to help you.

Regards,

Catie.

catgaughan

ok thanks, bit disappointing as can afford repayments and wont be getting out another loan!! thanks for taking time to reply.

kingstreet

Try different lenders' affordability calculators to establish your borrowing power. Here are a couple for example;-

http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

http://www.nationwide-intermediary.co.uk/calculators/aff_calc

Make sure your inputs are accurate, as this will tell you what you would realistically expect to achieve.

Thrugelmir

catgaughan wrote: »

do all lenders do the same??

Lenders can choose their customers. In these financially challenging times current debt levels may well be a deciding factor in who is accepted and who is declined.

Santander is currently looking to lend less and reduce the risk level in its mortgage lending book.

Orange_Ena

I got turned down for a re-mortgage with Santander a year ago. I initially tried to do it all over the phone and when I went through the income / expenditure list with them, they asked all sorts of outgoings such as haircuts, presents and holidays. I was prepared for the usual outgoings so when it came to these others, I couldn't think quick enough and ended up over estimating!

They said I couldn't afford the extra £60 per month (I was borrowing a bit extra for some work on my house) which was quite annoying as I believed I could.

I do have to thank them really as I cut back, reduced bills and generally started to deal with debts (even though I felt I could deal with the extra mortgage). Not long after, I went into the branch to see if I could apply again and they said it would have been ok to go ahead before but that they couldn't offer me as good a rate as over the phone :mad:

I wasn't happy with that so looked elsewhere. It is getting harder to get mortgages and from what I read at the time, Santander were being extra cautious.

An independent FA will be able to check the whole of market and you never know, may be able to find you a better deal than Santander were offering. Good luck.