Beware Santander

boatmanboatman Forumite
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Friends just went for a mortgage with them because they offered around 7% more, the downside being it was a slightly higher rate than others. It could just be individual circumstances, or a way for them to grab more business, but when they received their offer, it was for the same amount other banks were offering. Puts you in a somewhat difficult position of having to accept a lower amount than was hoped for or start the whole process again with another provider to get a better rate as there is no point paying more if they only offer the same amount...
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  • ACGACG Forumite
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    When you say they "offered" a higher amount, do you mean the calculator/DIP gave a higher amount?

    Did your friends enter the correct information (as the lender would expect them to enter it) on the calculator/DIP form? The calculators tend to be accurate to the pound if the information has been entered as the lender would expect.

    I am basing this on limited information, but I would say your friends have probably done something wrong initially. I tend to say the DIPs/Calculators are as accurate as the information entered. The biggest mistakes tend to be when it comes to overtime/bonuses/commission and benefits. People sometimes assume you put in the figure received - that makes sense in theory but it might not be correct in practice.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • boatmanboatman Forumite
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    I can only assume they did it correctly, most other figures they said were coming in about £10k less, hence why they went with Santander.
  • ThrugelmirThrugelmir Forumite
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    boatman wrote: »
    I can only assume they did it correctly, most other figures they said were coming in about £10k less, hence why they went with Santander.

    Pure supposition to second guess Santanders commercial lending policy at any given point in time. Not every factor can be built into online calculators. Nor the speed of change.
  • ACGACG Forumite
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    boatman wrote: »
    I can only assume they did it correctly, most other figures they said were coming in about £10k less, hence why they went with Santander.

    Fair enough, but my money is on the opposite. I use affordability calculators on a near daily basis and I can not think of any that have been incorrect.

    If it is a lender I rarely use, I always double check what figures I should be entering with a person where benefits or bonuses/overtime etc are being used. I do not believe a lender would have an affordabiltiy calculator online that offers more money knowing that it will get reduced purely in the hope of keeping a customer.

    It is a waste of money - credit checks, underwriting etc.
    It is a waste of time - underwriting, arguing with a customer as to why they are reducing the loan.
    It will not help their reputation - negative reviews online.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Mr_CuriousMr_Curious Forumite
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    My experience with Santander was that they were very easy to deal with. No problems at all and very easy to deal with overtime/bonus/commission payments.

    In my experience I'd recommend but then every case is different.

    Mr_C
  • edited 2 April 2018 at 8:36AM
    amnblogamnblog Forumite
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    edited 2 April 2018 at 8:36AM
    boatman wrote: »
    I can only assume they did it correctly, most other figures they said were coming in about £10k less, hence why they went with Santander.

    Your friends did not fully understand the Santander methodology.

    If they were looking to push lending parameters and finding the best rate possible, they should have had a professional manage it for them.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • edited 2 April 2018 at 8:02AM
    boatmanboatman Forumite
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    edited 2 April 2018 at 8:02AM
    Spoke to them again, there were no bonuses as they don't get any just a basic salary, was for one person, no kids, loans or debts, so as simple as it gets, and they went through a broker. The only thing that might have affected it was the flat maintenance fees.
  • kingstreetkingstreet Forumite
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    Ground rent & service charges impact affordability for all lenders and would see the amount offered reduced accordingly.

    Did the applicants simply forget about them?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • edited 2 April 2018 at 9:39AM
    AnotherJoeAnotherJoe Forumite
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    edited 2 April 2018 at 9:39AM
    boatman wrote: »
    The only thing that might have affected it was the flat maintenance fees.

    My mums maintenance fees were £3k a year so i dont know what your friends are, but sums like that could easily account for such a discrepancy.
  • Pixie5740Pixie5740 Forumite
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    How far along the process did your friends get with Santander? For example, was a survey carried out?
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