Santander using 'average' outgoings for affordability?

AnotherJoe

My daughter had this rubbish when she got a mortgage with Santander ( though the were upsides to using them as well) and the broker steered us around this, making sure she put numbers in that were OK but less than the averages they used. I agree it is crazy.

I think you should look at using a broker to find a more rational lender. The problem is they are all mostly interested in protecting their *rs*s due to past far too lax criteria. Now the pendulum has swung too much the other way into Alice in Wonderland territory.

amnblog

Santander are known for considering situations as is, not as they will be.

For example they factor your credit card debt into a case even if you intend to clear it before completion.

Thrugelmir

Teamjarjar wrote: »

We do have a car PCP, and a very small credit card debt that we could clear anyway, we're just using interest free for now.

The childcare costs is a secondary factor - the guy on the phone had to be talked into the fact that our costs will go down once our daughter turns 3, because she'll get free hours then. I can understand they have to take them into account, it definitely makes sense, but it's only a short term cost, compared to the 30 year mortgage! But I can understand that. And that is counted separately to our 'averaged' outgoings.

Precisely why there has to be generic rules. Lenders cannot micro manage every individual application to the nth degree. Borrowers by nature are optimistic about their own finances. Lenders are governed by external rules and internal policies. The application has to be assessed on it's merits at the time it's submitted. Not on events in the future when the situation may have totally changed due to unforeseen circumstances.

Teamjarjar

michelle2008 wrote: »

So you have a joint income of £44k and they say you can't afford your current mortgage? While there is only £50k left on it - was it a large mortgage originally with only a short term left (therefore high monthly payments)?

Is age an issue - are they costing a shorter term mortgage than the 30 years you have assumed?

Given what you have said about your outgoings I assume you aren't is much debt

It was a £55k mortgage over 30 years to start with, he put in equity from elsewhere. So age isn't an issue, they aren't large mortgage payments. We're barely in any debt. So it's bizarre that they say we can't afford it, but given what the other posters have said its not unusual, it's just odd in these particular circumstances. And frustrating to feel like we've wasted our times.

Thanks everyone for the advice, it's been so helpful, at such a stressful time! We're thinking seriously about using a broker now.

michelle2008

Teamjarjar wrote: »

It was a £55k mortgage over 30 years to start with, he put in equity from elsewhere. So age isn't an issue, they aren't large mortgage payments. We're barely in any debt. So it's bizarre that they say we can't afford it, but given what the other posters have said its not unusual, it's just odd in these particular circumstances. And frustrating to feel like we've wasted our times.

Thanks everyone for the advice, it's been so helpful, at such a stressful time! We're thinking seriously about using a broker now.

Must only be a couple of hundred quid!! Madness. Sorry I know this isn't helping but your mortgage is tiny'

Teamjarjar

We reckon it would be about £120 a month more. It's ridiculous isn't it!

buglawton

Santander does have an appeal process, ask them. Getting additional borrowing on the existing mortgage may still be the way to get lowest interest rate.

minimike2

You say they gave you a figure based on if you increased your hours?

You can't evidence your income based on something that may happen in the future.

I suspect this has something to do with it. I don't see how they could give you an AIP for lending based on income you don't even have yet.

rtho782

Nationwide do the same, we were expecting to have to go through tons of detail with our mortgage application but they barely asked us anything with regards to our outgoings.

Funny_old_game

minimike2 wrote: »

You say they gave you a figure based on if you increased your hours?

You can't evidence your income based on something that may happen in the future.

I suspect this has something to do with it. I don't see how they could give you an AIP for lending based on income you don't even have yet.

It should be a straight decline, no appeal. End of.