Underwriter decision - is it reasonable?

Gnomi777

Hi All,
I've just recieved the news that Santander have declined our mortgage application (2 months down the line) due to two things:

• My partners defaulted student loan which didn't cause an issue with the credit check.
• The debt management payments from his previous relationship about 8 years ago which he has been paying without default since (very small amounts £2, £5, £3 per month).

I'm absolutely and totally gutted that they have used these as excuses for not wanting to lend. We have also explained to them the reason behind our need to move - which is that we want to take on full time care of his two children as their home life with their mother is appalling. We are able to afford the repayments and have no other loans or credit anywhere else.
Do these reasons sound fair and is there anything you recommend us to go back to the mortgage advisor with as she is happy to appeal this on Monday.
Many thanks, please be gentle with your replies as I don't want to cry in work...:(

Dave_Ham

Hi,

Santander will not tolerate any adverse data these days I am afraid and it is reasonable to decline.

Whilst the amounts he pays are low, he has defaulted on a credit agreement which he is yet to repay.

Santander are not the only lender though and there are other more forgiving lenders out there.

You need to get copies of his Experian, Equifax and Call Credit reports and get them to a broker.

Subject to the details of the case, this could well be achievable.

The advisor in branch is just being too polite, Santander will not reverse this decision.

All the best, hopefully my reply does not bring tears to the workplace.

Senior_Paper_Monitor

Abbey were never going to take this - was it an in branch or broker application ?

Thrugelmir

Gnomi777 wrote: »

The debt management payments from his previous relationship about 8 years ago which he has been paying without default since (very small amounts £2, £5, £3 per month).
I'm absolutely and totally gutted that they have used these as excuses for not wanting to lend.

So didn't he uplift the repayments in the 8 years. You cannot expect a lender of any kind to consider advancing any further funds. Until this debt is repaid. While it may have appeared to be clever to take the long term interest free option. Your partner is finding out that it's lenders that hold all the aces not the borrower.

Suggest you get the debts repaid ASAP. As will take time for his credit record to be repaired.

Use your frustration to address matters going forward. No point in looking back as history has been written.

Gnomi777

Thank you Dave, I really appreciate your response. No tears!
I think we're just so gutted because their Advisor was so positive about it and kept saying she couldn't see a problem and had a good feeling about it.
I'm just surprised that they still count the debt repayments from so long ago as they have fallen off the credit report and don't show.
If we arrange to repay all those outstanding debts do you think they might reconsider?
If not, if I could get a family loan for the additional borrowing we need for this house, could I then use a mortgage to pay my family member back in 2-3 years when my partner might be in a better position to get a mortgage?

Gnomi777

"Abbey were never going to take this - was it an in branch or broker application ?"

Hi Senior Paper Monitor - it was an in branch mortgage advisor. She did the inital credit check which went through fine.

kingstreet

Why not go elsewhere?

At lease put it in the hands of someone who knows what they are doing?

I wouldn't expect a Santander employee to do anything more than be positive. They aren't going to tell you if you have a better chance, or a better rate down the road.

Dave_Ham

No worries, why are you hell bent on using Santander?

The advisor was confident as she had no other solution to you. Often the advisors in branch are targeted on applications and not offers/completion..

Honestly, you will thank me in the future; get his credit files and find a recommended broker and you are more likely to find a solution with less stress..

Good luck

Gnomi777

Thanks Thrugelmir,
I don't think he knew he could increase the payments. The debt is from his previous relationship about 8-10 years ago and she is not contributing towards the repayment so he was just going along with paying the small amounts which have less impact on his outgoings.

Gnomi777

Thanks again Dave. I think we will do this. I have asked her to appeal but don't hold much confidence. I would approach the MSE recommended broker London and Country as I used them to get my current mortgage but they've declined to do anything because of the student loan default. Guess I know what I'm doing this weekend...(apart from drinking away my sorrows)...

Dave_Ham

Before you engage anyone, any decent broker is going to want to see credit files.

L&C would not necessarily be a good home as they tend to deal in volume, rather than specialist areas.

Experian is typically achievable immediately (if you sign up for their 30 day free trial)

Equifax is harder work and Call Credit is hit and miss, although Noddle tends to reflect this.

Once you understand the exact information reported, chances are a better solution will be achieved.