Most 'lenient' lender?

DarthRaider

My wife and I are looking to remortgage as we are on the Halifax SVR at 4%. We recently applied through Santander (to take advantage of their rates for account holders) but they won't lend us enough. We want to borrow £300k on a house worth £380k.

Despite not having missed a payment ever, we failed with them on 'affordability' so I was wondering if there are other banks with different lending criteria that we might approach?

Senior_Paper_Monitor

Totally depends on your detailed circumstances - each lender favours certain combinations and/or penalises certain factors.


For example - some allow tax credits, some don't. Some penalise credit card debt more than others. Some vary multiples and other components of calculation at different income levels. Some react to kids differently to others. The list of options/factors is near endless.


I don't know about other brokers, but we haven't totally cracked which combinations fit with who since MMR (April rule changes) so still a fair bit of number crunching when searching for income stretches - and some surprising results

kiddakidda

This info is only based on my own experience / circumstances.

With the Chelsea BS left us about 10k short on affordability (although did offer more when considered with underwriter). HSBC was around 20k short. Nationwide affordability allowed us the amount we required (and more).

It's generally tougher to get higher risk lending due to this years new lending rules.

Might not be the same for everyone though.

Good Luck

DarthRaider

Thanks. Our credit history is excellent so I know it isn't that, it will always be affordability from the banks point of view (even though I know we can afford it) due to my wife being part time at the moment.

There is equity in the house, we live in a popular area so I don't see much risk if we couldn't keep up the repayments. It frustrates me that the government are supposed to want to reduce debt and we could do that by moving to a better rate!

Edi81

Remember the lender needs to "stress" the affordability or repayments on the basis that interest rates will rise to 6 or 7%.

What may be affordable now when rates are still ridiculously low May very quickly become not affordable.

kingstreet

If you are repaying unsecured credit, Abbey assumes the current credit payments will continue, resulting in you being abler to borrow less.

As it is one of the more generous lenders on affordability, I would suggest speaking to a broker to establish why it was offering less and how this compares with others.

DarthRaider

Edi81 has hit the nail on the head. The advisor I spoke to at Santander said it was all based on 6%. That is fine, that they are looking at the future from their perspective, but they don't take ours into consideration. For instance, before the 2yr deal I was looking at ends, my youngest child will no longer be at nursery, therefore giving me considerably more income to cover increased costs.

Also, in 2 years time I will owe quite a bit less on the house so the risk is decreased further.

Thanks all for the advice, I will try an independent and even the Halifax as that is where the mortgage is currently, but I won't hold my breath...

Dave_Ham

Why not just take a new deal with Halifax, subject to your details of course?

Thrugelmir

DarthRaider wrote: »

There is equity in the house, we live in a popular area so I don't see much risk if we couldn't keep up the repayments. /QUOTE]

Not how it works. Lenders lose money on repossessing property. What's important is the probability of you repaying the debt owed, i.e. the lender will never have the need to speak to you regarding your mortgage once it is set up.