Santander rules

smartskyline

Hi,

Can anyone in the know tell me why Santander have a rule when applying for a mortgage which states you can not get a mortgage with them if:

You have never been declared bankrupt or subject to an IVA

But when I applied, they have deemed a past DMP as an IVA, so therefore I am not eligible? Ever!

As I understand it, an IVA is very different from a DMP.

Santander will give me 22.5k in unsecured loans, credit cards and overdrafts, but will not even consider me for a mortgage for 150k secured on a 300k house?

I have clean credit records now, as 6 years have past.

Thrugelmir

Santander as a business can set their lending policy as they wish.

In summary you defaulted on your debts. Doesn't matter which route you took to exit the situation. The bank is appraising you and doesn't want your business as it considers you a high risk.

meer53

smartskyline wrote: »

Hi,

Can anyone in the know tell me why Santander have a rule when applying for a mortgage which states you can not get a mortgage with them if:

You have never been declared bankrupt or subject to an IVA

But when I applied, they have deemed a past DMP as an IVA, so therefore I am not eligible? Ever!

As I understand it, an IVA is very different from a DMP.

Santander will give me 22.5k in unsecured loans, credit cards and overdrafts, but will not even consider me for a mortgage for 150k secured on a 300k house?

I have clean credit records now, as 6 years have past.

I assume thats a typo !

Gromitt

Thrugelmir wrote: »

In summary you defaulted on your debts. Doesn't matter which route you took to exit the situation. The bank is appraising you and doesn't want your business as it considers you a high risk.

Regardless, I would assume they would way up the situation. If someone is requesting a 150K mortgage on a property worth 300K (50% LTV), then they are pretty much guaranteed to get their money back if the mortgagee defaults, and considering the market, may even make a profit.

Secondly, if they classed them as 'high risk', then they wouldn't be lending them over 20K in unsecured loans.

grumbler

Gromitt wrote: »

...considering the market, may even make a profit....

I think they were considering the market in Spain and other countries. However, instead of profit they made loss.

And they hate selling repossessed houses. Too much hassle and too costly, especially if market falls and no one wants to buy them.

BobQ

smartskyline wrote: »

Hi,

Can anyone in the know tell me why Santander have a rule when applying for a mortgage which states you can not get a mortgage with them if:

You have never been declared bankrupt or subject to an IVA

Aside from the typo, the answer is surely because they want to get the money loaned back. Speaking as one of their customers who saves money with them, on balance I think its an excellent idea.

Archi_Bald

BobQ wrote: »

Speaking as one of their customers who saves money with them, on balance I think its an excellent idea.

Can't argue with that. They got a lot of my cash, and I'd rather they'd be careful with it.

Though I would consider giving people a chance who have been "good" with money for the last 6 years, even if they previously had made a complete mess of their finances. May be Santander are just a tad less soft than me, and may be that's why they can confidently offer me 3% AER on my current accounts. I'd rather they will continue turning what they consider high risk applicants down and continue paying me a good interest rate.

CKhalvashi

BobQ wrote: »

Aside from the typo, the answer is surely because they want to get the money loaned back. Speaking as one of their customers who saves money with them, on balance I think its an excellent idea.

I feel, however, that there is a 6 year rehabilitation period with them.

I'm not profitable at all to the CC companies, so would you rather have them lending to me at 0%, with 2.5% cashback?

CK

opinions4u

No riff raff.

Thrugelmir

Gromitt wrote: »

Regardless, I would assume they would way up the situation. If someone is requesting a 150K mortgage on a property worth 300K (50% LTV), then they are pretty much guaranteed to get their money back if the mortgagee defaults, and considering the market, may even make a profit.

That's how consumers think. Lenders can pick and choose their customers. So they would much prefer repayment with no hassle at all. Mortgage lending margins are too slim to warrant risk if in doubt. .

BobQ

CKhalvashi wrote: »

I feel, however, that there is a 6 year rehabilitation period with them.

I'm not profitable at all to the CC companies, so would you rather have them lending to me at 0%, with 2.5% cashback?

CK

I was being a little blunt with the OP. I do accept that people get into difficulties for all sorts of reasons and that any track record should be considered on its merits. They need to accept that when they are borrowing money the lender has a right to lay down the terms and conditions. Having an attitude that they have been debt free for six years so (by implication) their prior record of poor debt management should be ignored is not realistic in my view. I do not see what CC firms have to do with this. They also lend with rules based on perceived risks and so they should.

Regarding the OP, I presume that Santander have decided not to loan to certain types of potential borrower to enable them to offer other types of lender a better deal and that the OP will have to try elsewhere. Its harsh but just demonstrates that getting into debt has longer term consequences.