Santander charging additional lending rate rather than mortgage rates for staircasing

Loopy28

Hi, hope someone can help.

I have a 40% share in a shared ownership property, the mortgage is with Santander and we are applying to buy the whole property.

First they have told me as it is additional lending, we need to be max 85% LTV where as normally it is 90%. That part isn't an issue as I can put down the funds from my saving to make up the shortfall.

The problem is they are trying to charge additional lending rates, which are much higher than mortgage rates.

They are aware it is for staircasing to full ownership.

I've got to the stage of credit checks done. I have my full 90 minute appointment next week with a different advisor next week. I'm hoping the other advisor got it wrong.

It's strange because the initial advisor I spoke to said she checked and 90% was ok because it was for buying the remainder of the house. But the second person who was a mortgage relationship manager said it needed to be 85% and the same terms and rates as additional lending.

The call next week will be with an actual mortgage advisor so I hope they'll know for sure.

Does this sound right?

lord_ikon84

I would be really interested in how you get on. Would it be better to pay the exit penalty and move to another lender if your having to much trouble

amnblog

They are clowns - engage a mortgage broker.

Loopy28

I spoke to a mortgage advisor at Santander today and it has been confirmed, to buy the remainder of my property I need to have max 85% LTV and have to have an 'additional lending' rate of 4.49 on the remainder of my property and not the c2% rate I would get if they let me have their mortgage rates.

Spoke to a whole of the market broker on the phone this afternoon, she checked and I would save £110 month to move but with the penalty from Santander I wouldn't save much.

I phoned Tesco mortgages too as they have cheaper rates again and the broker can't access these, Tesco told me that even though I will buy the house outright and it will no longer be shared ownership they still won't let me have a mortgage with them as it used to be shared ownership.

Feel very disappointed in Santander, if I move house and borrow more I can have their mortgage rates but if I stay put and buy my whole house they want to charge me their additional lending rate. Such a shocking way to do business.