santander

javorb

well where do i start ,18 months ago we purchased an old cottage for £95000,we managed to get a mortgage with santander but put £35000 deposit ,then 3 months later borrowed a further £15000 ,then a further 3 months later a further £10000,taking our mortgage to £80k with value of £135000,throughout this time we had 6 defaults on our credit file ,18 months later we have no defaults and have had our cottage valued at £165k in october ,now we have added an extesion which wind/watertight ,all new slated roof ,windows/doors and block work done ,est value is £200000(changing cottage from 2 bed to 5 bed with 3 bathrooms)santander have declined our application due to wife having 1 default left which was put on 3 years ago ,according to their advisor they are not lending for remortgages anymore mainly trying to get first time buyers,our finished ltv will be below 50 %,i will now try and get the mortgage on my own ,santander took us on with all of the defaults but now we are nearly clear they will not do anymore ,hopefully we will get another high st lender but feel well annoyed as santander knew from the start our intentions we now have £3k early exit fees

GMS

Santander have changed their policy regarding adverse credit since you took the mortgage out. No longer accepting any.

Thrugelmir

When did you finish paying accounts under your DMP?

Not the default date that matters. Its when you cleared the debt.

javorb

GMS wrote: »

Santander have changed their policy regarding adverse credit since you took the mortgage out. No longer accepting any.

we were not surprised though my wife had been on another forum yesterday that was full of negative remarks about santander mainly from current customers trying to remortgage,if banks dont lend then construction industry and more will decline even further,why do they want first time buyers who have no mortgage payment history ,i may have had trouble in the past but i have never missed a mortgage payment ,it has been seen many times in recent years that nearly all of the banking world is full of criminals who have made millions in bonuses for being very badly mismanaged,wrongly sold ppi ,bailed out by taxpayers but seem to sit on the moral high ground ,what credit rating would hbos/lloyds etc have, yet the government /bank of england offer them cheap money ,sums up britains banking system ,help the public not the bankers

Thrugelmir

The banks management has changed so have their policies. They no longer take the same risks with lending.

What a lender wants to see is you inject your own money into the project. Not borrow an ever increasing sum.

javorb

Thrugelmir wrote: »

The banks management has changed so have their policies. They no longer take the same risks with lending.

What a lender wants to see is you inject your own money into the project. Not borrow an ever increasing sum.

,Does it look fair if a first time buyer can get a higher ltv than someone who has paid a mortgage for years
when finished my ltv will be below 50% so where is their risk ,more of a risk with first time buyers ,intially my ltv would be below 70% within 1 month my extension will be completed and i will have changed my cottage from a 2 bed to a 5 bed 3 bathroomed home ,max mortgage of 145k with a value of around 300k when finished ,how many of the 125% borrowers would like to be in my situation ,banks did badly lend giving 125% but have gone too far the opposite direction

GMS

javorb wrote: »

,Does it look fair if a first time buyer can get a higher ltv than someone who has paid a mortgage for years
when finished my ltv will be below 50% so where is their risk ,more of a risk with first time buyers ,intially my ltv would be below 70% within 1 month my extension will be completed and i will have changed my cottage from a 2 bed to a 5 bed 3 bathroomed home ,max mortgage of 145k with a value of around 300k when finished ,how many of the 125% borrowers would like to be in my situation ,banks did badly lend giving 125% but have gone too far the opposite direction

What about a FTB with no adverse credit? A better risk?

If you need further borrowing then you need to look elsewhere.

Dave_Ham

Whilst I understand your logic, as stated Santander have been hugely burnt by their previous lending policy.

Whilst you have maintained payments well, many in your demographic risk category have not.

Essentially it is their decision who they do/do not lend money too.

Only good news is that potentially you may be able to achieve better rates, although suggest you achieve your Experian, Equifax and Call Credit files in case any historic adverse has reappeared - it happens..

A default of 3 years ago is pretty recent and highly likely to be a stumbling block for a new lender, although hence the opinion to get credit files and see a broker.

Doing this in a sole name application should really be the last resort and take some formal advice on this.

All the best

Wh05apk

As usual you have been fed bull**** by a lenders salesperson, it is nothing to do with whether you are an existing customer or FTB, it is purely down to your credit history, you have credit issues, Abbey are now more selective with what business they take on.

How much longer are you tied in for? could you wait till then and remortgage elsewhere then to save paying the penalty?

al69

Its hard to understand their logic.I recently remortgaged with them as an existing customer.Our ltv was 58% and never missed a payment ever.I asked to borrow an extra 7k for home improvements and was declined.The fact i was moving to lower a rate meant our payments would have been exactly the same.They reckoned i couldnt afford it but then let me knock 6 years off the term and up my payments £200 per month !

Ive given up trying to make sense of it and will just save the money up.Just like yourself ive added value to my house by carrying out a complete refurb doing most of it myself when im not working.

Its all about what the computer says not about the individual human borrowing it, notihng you can do when they think like this.

Thrugelmir

al69 wrote: »

Its hard to understand their logic.

The logic is very easy to understand. So in a generic reply rather than any comment on the OP's circumstances.

Customers who default on debt in any way cost the banks money in some form. So a customer who subsequently borrows ever increasing amounts in the future in a short space of time will be considered a higher risk than other borrowers. The bank has a choice who to lend to. As only has limited funds. So the message is very clear manage your personal finances in a responsible way or we won't be interested in your future business. At least until a suitable time has elapsed for us to have some assurance that you won't repeat the default.

I should add that statistically people who default once are highly likely to do so in some form again in the future. That's called human nature.