Santander Mortgage Stuck on Standard Rate

Leon_W

" So you do believe the only criteria that should be assessed when a customer asks for a new mortgage deal is their previous payment history on their existing deal? "


Yes I do. What other criteria is there ? You've borrowed the money and made payments on time. Contract fulfilled in my view.


Of course, this only applies to deals with your current lender. If you're trying to remortgage to another lender then that's up to them to decide.

mrginge

Leon_W wrote: »

" So you do believe the only criteria that should be assessed when a customer asks for a new mortgage deal is their previous payment history on their existing deal? "


Yes I do. What other criteria is there ? You've borrowed the money and made payments on time. Contract fulfilled in my view.


Of course, this only applies to deals with your current lender. If you're trying to remortgage to another lender then that's up to them to decide.

the security of knowing that someone with poor credit was guaranteed to be accepted by their current lender would have two impacts
A. massively disincentivise that person from sorting their issue out
B. Load additional cost onto the lender which would have to be passed on to all other customers.

Leon_W

A. What issue ? They've made the mortgage payments on time. What they've done outside of that contract is of no consequence. A mortgage is simply a loan secured on property. If they fail to make payments the house goes. Everything else is smokescreen.


B. In what possible way has "additional cost" been loaded onto the lender. In our scenario all the payments have been made on time ! Happy days surely ?

amnblog

Do BT charge you more because you did not pay your gas bill?

Thrugelmir

Leon_W wrote: »

" So you do believe the only criteria that should be assessed when a customer asks for a new mortgage deal is their previous payment history on their existing deal? "


Yes I do. What other criteria is there ? You've borrowed the money and made payments on time. Contract fulfilled in my view.

And you are a mortgage broker? :eek:

Well there was a quote yesterday that 20% of jobs now only require the skill set of a 11 year old.

Leon_W

Don't just read the last post and think you know it all thrugelmir . We were talking of fulfilling contracts not specific mortgage criteria.


" And you are a mortgage broker? " Yep. Pretty good one at that if I do say so myself.




" Well there was a quote yesterday that 20% of jobs now only require the skill set of a 11 year old. "


And you've got the best one on the choo choo train I'm guessing !


Grow up. We were having quite an interesting debate until your stupid post.

mrginge

Leon_W wrote: »

A. What issue ? They've made the mortgage payments on time. What they've done outside of that contract is of no consequence. A mortgage is simply a loan secured on property. If they fail to make payments the house goes. Everything else is smokescreen.

The issue that the person has which has caused them to have poor credit. You want the lender to ignore the factors outside of that contract, but the client still has to deal with it. By giving them a free ride with their mortgage, that person is disincentivised from dealing with the issue.

B. In what possible way has "additional cost" been loaded onto the lender. In our scenario all the payments have been made on time ! Happy days surely ?

Do you understand the concept of a bad debt provision?

mrginge

amnblog wrote: »

Do BT charge you more because you did not pay your gas bill?

bt don't have access to that information so they can't use it in their pricing model.

Do EE allow you to open a mobile phone contract if you fail their credit check?

Leon_W

I don't think they would be giving them a "free ride" with their mortgage as it may only be a £20 difference between the "Credit A" customer and the "Credit C" customer (can we call them that?)


All I am saying is that the lender , once they have lent the borrower the money, cannot then turn around later in time and say "because you have now had a baby and your wifes not working" change the goalposts . If they have made the required payments then they can obviously afford the loan.


I accept your argument on bad debt provision but don't consider it as huge an issue as you imply.

mrginge

Man you reply too quick...

I think you're talking there about marginal changes that, i guess under MMR are scrutinised more. i can accept that for changes like that, a spotless payment history is probably a more reliable indicator.

However, the issue with cases like the OP is that a major change has affected them and it surely can't be right that a lender should be obliged to ignore that issue.
Since no-ones going to come up with a list of what is or isn't ignoreable (which isn't even a word) then it has to be up to the lender to decide on their own criteria.

The suggestion (not from you i think) that this is all about profiteering by lenders rather than pricing based on risk is just silly. All businesses factor risk into their pricing models in some way.