Santander Mortgage

Pet50

Hi, I have a Santander repayment mortgage (30years term) which comes to the end of its fixed interest 2 year term in Jan 2017. A year ago I moved in with my boyfriend who has a mortgage on his house too. I paid him rent and rented out my own property. Santander were very good about this as I had to inform them. Now we are looking to buy a joint home together and rent out his property too. Santander have said under their terms I can no longer have a mortgage with them as I don't own the house I'm living in. Once we have bought our new house I would be eligible. What can I do? There is going to be a gap of maybe 2-3 months whilst we are ploughing through all the reports, mortgage details & conveyancing. Is there any way I can continue with them and avoid having to change lenders at the same time as doing all of this? Getting a bit bogged down with it all.

Canary_Yellow

The term of your mortgage is 30 years. The end of the fixed period just means you go on to the SVR. So no action means you just carry on and pay that rate.


However, this assumes that Santander are not calling in the loan. Which would be different altogether. Is that what they're doing? And if so, what conditions / timeline is attached to that?

downhillfast

I'd imagine the issue is to do with their lending criteria specifically linked to buy-to-let / consent-to-let mortgages.

Reading between the lines (ie you took out a 30 year term and then lived in the property less than a year before requesting to let it out) they probably think you are trying to circumvent the strict criteria for investment properties - ie having more than 25% equity and your own property that you live in.

user1168934

What you are trying to do is called "Let to buy", not to be confused with buy to let - just learnt that yesterday :-)
I was speaking to my mortgage advisor regarding a similar matter and he told me that santander don't do "Let to Buy". This might be the issue here. If your fixed term has ended then you are in a good position. If you still want to rent it out then you will need to apply for a let to buy mortgage with a different provider who will pay off santander.

user1168934

Oh I think I see the problem now. You are trying to get a buy to let mortgage but the bank says you cannot do that until you own another property where you live. Is that correct?