Rejected Santander Mortgage - Urgent Help Please!!

mrsmoneypenny2008

Urgent Help/Advice Sought Please!!!

Santander Mortgage Application rejected by underwriter…



Hi everybody, I wondered if anybody could give someadvice/guidance into the current mortgage application as we have today heardthat our mortgage application has been rejected by the underwriter and now don’tknow what we can do, we are currently in a chain and have sold our house tobuyers who have had their mortgage approved…

We have recently sold our house for £265,000 and havepurchased another for £340,000.

We currently have an endowment mortgage with a very lowinterest rate (1.3%), which matures in 8 years. The endowment mortgage is for£75,000 and is estimated to be worth £50,000 (lower estimate) on maturity.

We are currently trying to port our mortgage with Santander,thereby keeping the current interest rate. We have attempted to borrow £178,000,approximately £30,000 of which is effectively equity to be used on upgradingthe property. After several attempts the figures were eventually agreed and thedetails were sent to the underwriter for approval. The requested amount being£178,000 split into £138,000 repayment (for 20 years) and £50,000 interest onlybased on the endowment price promise, for eight years (when I was due to retirefrom my current job and receive approx. £130,000 pension lump sum and approx. £20,00a year pension, and the endowment is due to mature). The current value of the endowmentis £27,000.

Our joint new monthly income is £3477 (£2604 for me and £873for my wife who is part time), however it appears the number was mysteriouslyreduced by £300 when the paperwork came through to us. (Also our child benefitof £147 per month was not included)

I phoned up to question this and was advised that theunderwriters decision had just come back as ‘Refused – repayment issues’. I wasadvised that this had been sent back to the advisor but as yet I have not beenable to speak to them.

I now don’t know where to turn now and am waiting theircontact, can anybody give any advice on this please?!!!!!

Dave_Ham

I am assuming that this has been done in branch and therefore not sure how much help anyone on here can provide, although many will have empathy.


I would imagine the issues are ones on the interest only and porting product side, as Santander as an organisation have huge issues getting these components right.


If you are direct, you need to create as much grief as possible at a local level in branch although getting sense to the underwriters is hard work.


Looks like there will always be another solution out there, although clearly not on that rate and unlikely to include interest only..


Good luck

mrsmoneypenny2008

Thanks for your response.


Actually this was not completed in a Branch but over the phone. Initially we tried to borrow a bit more and the computer said no, this was changed and eventually the computer said yes.

We then had a telephone mortgage application and again the computer said no (based on the original figures that had allowed the application to proceed to that point), several changes and a £10,00 drop later and eventually it was agreed and submitted to the underwriter only to be rejected again :mad:

This is proving really stressful, I really cannot work out what they want, we are borrowing what I feel is well within our capabilities and significantly lower than the £200,000 they agreed to let us borrow in principle (which effectively means the mortgage certificate was not worth the paper it was written on).

I have some hope as we can reduce the amount a bit but I am starting to wonder if they will let us borrow at all, this seems so unfair as I cannot see how we can not be getting through the stress test, sure we are far from wealthy but with the margins we have a relatively low borrowing requirement surely we should be able to ge this mortage.

Does anybody have any ideas or can advise what happens next?

Thanks

Dave_Ham

I am unsure you will get too many useful comments, as the Santander direct (through branch or phone) is a mystery to most


You have to create a fuss to them on the phone and/or in branch


Alternatively sort out a contingency plan.


I do not think it is unrealistic for someone at Santander to tell you at the very least why it has been rejected.


Good luck

mrsmoneypenny2008

OK thank you very much for your response.


I will have to wait for them to contact me and go from there, it really does not make sense and I now partly wondered if they ever had any intentions of letting us port the mortgage as whatever changes we make seem to end up getting rejected.

Incidentally, is it usual for them to record different net incomes to that discussed (and proved with pay slips etc) over the phone as the paperwork (and that presumably sent to the underwriter) is £300 lower than the actual figures and this obviously is going to have a huge impact on the affordability calculations...

Dave_Ham

Depends upon any deductions, although it should be obvious on the payslips.


Not everything the Santander underwriters do is logical, or correct.

mrsmoneypenny2008

ok, thanks.

Fingers crossed then, hopefully if it has gone back to the mortgage advisor I will be told why it has been rejected and have a chance to rectify it. I can borrow a bit less but unfortunately they will not let me know what they will let go through so we seem to be playing a game, definitely not 'in your interest' as they state..

Rutland65

We are trying to move house and have been refused a mortgage by our current lenders, Santander.
We want to move to a property of exactly the same value. We do not want to borrow anymore than we currently have or for any different period.
Originally we were told that they would port the mortgage.
After we submitted all our expenditure, we were told that we could not afford it. Which is ridiculous as for the last 9 months we have been paying double the minimum payment. They are effectively saying that we cannot afford our current mortgage.
Part of the problem when searching for another lender, seems to be that i am working overseas and not paying tax or NI in the UK.

It still seems ridiculous that the only thing that wil change will be our address.

Any ideas appreciated

Regards