Santander refuse to mortgage

Garethr123

Hello all. I'm an avid reader of the forum but yet to post, until now so here goes.

Myself and the Gf are purchasing a house from some friends, it's in need of renovation etc but that's no issue.

We have the mortgage agreed after financial scrutiny and eventually had the thumbs up. After this we had instructed our own Homebuyers survey to be completed, for peace of mind. The survey came back saying that the single storey extension had a crack which was old and purely cosmetic, cause from settlement probably in the 80's.

Since that Santander have had their valuation survey, to which the surveyer saw the crack, and said he would have to out on 100% retention until an engineers report is carried out. After this he said to my father (showing around the property) that he was certain it was cosmetic but was covering the lenders back.

So one week on and I have instructed an engineer to carry out a report on such crack, and he came back "settlement in the 80's, cosmetic but was a poorly built extension. Crack was cosmetic and nothing apart from bonding the crack and replaster is required"

So I phone Santander today, they tell me that the report is not sufficient and I need to submit a full report which is approximately 29 pages in length. This is not what I needed to hear. After shedding out £1000+ on surveys, I can no longer afford to have a full building survey despite the vendor offering to help.

Are Santander being fully unreasonable?

I'll be calling Monday to get to the bottom of this and see what they want from me. I'm out on a limb really. To add to the mixer I'm off on military deployment in a few weeks so was hoping this will all have competed before then. The solicitor has everything completed bar the exchange.

Sorry or the long read but we are desperate and I'm running out of hair!

marksoton

Garethr123 wrote: »

The solicitor has everything completed bar the exchange.

Well they haven't as you don't even have a full mortgage offer.

You either play ball with Santander or look for another lender.

Exactly what surveys have been carried out?

Garethr123

Sorry so what I mean is the solicitor has back all searches, permissions to exchange, contracts from the vendor etc. The offer and mortgage are the holdups.

So the first survey we had carried out was a homebuyers report. Very thorough and a thorough written up report too. The other was an engineers visual survey and report on the extension. He too is under nonillusion that the crack is something of old that has remained the way it is for 30+ years.

Worth noting that I did ask Santander specifically and wrote down word for word what it was they wanted from the report and they I hadn't thought of that to be honest.

"The house cannot be considered until a satisfactory engineers report and the recommended works are completed under professional supervision"

The report we had was an in depth visual inspection with a full course of remedial instructions if we wished to carry them out but there was not structural requirement

marksoton

Then as you say you need to clarify with Santander exactly what their requirements are.

Garethr123

That was the aim on the last phone call and all the advisor in the phone would give away is the quote mentioned above.

marksoton

Garethr123 wrote: »

That was the aim on the last phone call and all the advisor in the phone would give away is the quote mentioned above.

Then i'd be going to a broker with all information and getting them to sort a more suitable lender.

Jax1111

We are right at the end of the exact same situation. Crack at the bottom of the rear extension. The homebuyers report said it needed further investigation. We sent it onto the mortgage lender whose surveyors said no deal until a full structural report is done or reports from any remedial work.

We went back to the sellers who initiated their own specialist to have a look. We weren't prepared to do a full structural survey until the crack was delt with, otherwise the outcome would be the same and we would be £1k down for no reason. Anyway fast forward a few months it turned out to be subsidence due to a leaking down pipe, the seller made a claim on their insurance and it has all now been remedied. We have a survey from before work started and a survey once completed. Literally today we were given the go ahead (4 months on).

It sounds to me your mortgage lender and their surveyors are worried about anything that may mention settlement or movement and are looking for a full structural survey. There would be no way I would pay for remdial work for a house that was not ours.

Hope that has helped.

G_M

I'm confused as to what advice/information you are hoping to get here.

Santander have made their position clear. And if you are not clear on their position, then you need to speak to them.

You options are

* comply with Santander's requirements (at whatever cost) and hope they are then satisfied (they may not be)

* find a new lender

* ask the seller to contribute to cost of the required surveys, or reduce the purchase price (seller may or may not agree)

* cut your losses and walk away

kilby_007

From your quote, it sounds like they're expecting a properly documented report stating exactly what works need doing, and proof that the works have been carried out. It doesn't sound like your engineers report gives any detail, from what you've said. As a professional you can't say something was poorly built but then not qualify it with further detail.

Garethr123

Without uploading the document to show it does go into great detail about construction, measurements taken, checks carried out and then a detailed report as the the conclusion to the fault.

It also has another page solely laid out with reccomendstions for the remedial repairs going into external repairs, internal repairs and how each need to be carried out to achieve the end result.

I think the initial quote was under described by me sorry

theartfullodger

Mortgages aren't like state pension or child benefit (if under a certain income) or medical treatment on the NHS. There is no "entitlement" to a mortgage, certainly not from any particular lender.

They can decide on their own criteria, as long as they are no discriminatory or otherwise unlawful.

Strongly suggest you work, in a calm, polite & helpful manner to resolve the issues with Santander or find another lender.

Your report, their interpretation or your approach clearly doesn't satisfy them: They don't "need" to say yes, you need to persuade them to do a deal.