Remortgaging woes with Santander

darkfibre

My wife and I really feel quite deflated right now. We are/were trying to remortgage our home with Santander (currently with another lender) because we have renovated our house. We put in our application with our broker around 9th April. Apparently somewhere in between our account got 'deleted'. Got it reinstated about 2.5 weeks ago, passed the affordability and credit checks, only to hear back yesterday that we got declined. Reason for this is because my second retained property which I am renting out is 'not valued high enough', even though I bought the property for £40K less than what it is worth today and have never missed payments for 7 years and I am in positive finance regarding rent earnings even taking into consideration all maintenance and service charges. Basically, it seems like we have been declined because our rental property is in positive equity.

How is this possible? I just do not understand how it relates to our residential remortgage application. Our broker has never heard of this situation and will be appealing. I want to know if there is anything we can do to turn this around or if anyone can shed light on this situation and provide some useful advice to go back to Santander with.

So disappointed right now

Thank You all for reading.

Thrugelmir

There's always the risk that the property will generate no income.

Santander have a stated aim of reducing their exposure to residential property lending and increasing to business instead.

So there will be no appetite to underwrite business in certain circumstances.

darkfibre

Thrugelmir wrote: »

There's always the risk that the property will generate no income.

Santander have a stated aim of reducing their exposure to residential property lending and increasing to business instead.

So there will be no appetite to underwrite business in certain circumstances.

So would a possible remedy to this be selling that property? This landscape is amazing.