Mortgage Advise for a friend

James1980

Hi All,

I have a friend who has made an offer and had it accepted at 60,000 on a property.

he is willing to pay 45% deposit, but Santander have referred his application to head office because he wanted to take it over a short term.

I and others have advised increasing the term would help him getting a mortgage approved.

Should he wait for Santander or contact a Mortgage Broker for further advise?

Thanks
J

kingstreet

How short?

Santander don't like short-term lending, five years or less.

The best thing to do would be to take the mortgage over a longer period and make voluntary overpayments to reduce the term.

Probably too late to do that now.

James1980

it was 7 years he wanted to take it over and with Santander they are doing a lot of mortgages based on affordability.

so with his Salary.. 7 year mortgage on a 30-40k amount it was pushing his affordability a lot. told him... why go 7 years anyway you should of went a longer period to get it approved and then worry about making the term shorter after the initial 3 or 5 years.

With his application being sent off to head office for approval or denial.. Is there much point him checking with a Mortgage broker or should he just wait for Santander Decision and then go to a different bank or a Mortgage Broker for a longer term?

amnblog

I knew a guy waited for Santander.

He's still waiting

James1980

haha

personally I cant really complain, I was on here a couple of months ago myself about a mortgage and some had said I would not have much or any chance because of debts we had.. but it turned out.. santander where willing to give us a mortgage without any issues as long as we paid 25% deposit on any property up to 150k

amnblog

James1980 wrote: »

haha

personally I cant really complain, I was on here a couple of months ago myself about a mortgage and some had said I would not have much or any chance because of debts we had.. but it turned out.. santander where willing to give us a mortgage without any issues as long as we paid 25% deposit on any property up to 150k

Yes Santander will put square pegs in round holes.

As long as they go off and get their edges rounded off first.

Wh05apk

Where did your friend do this, in branch or broker?

Whoever should have got an AIP first which would have indicated the issue, they could then have tweaked it to meet affordability, once the mortgage was agreed and completed, they could then have overpaid as necessary.

amnblog

Is this an affordability issue for Santander or a 'pound of flesh' issue