Santander reduce LTV then decline?

woofdonkey

To cut a long story short, we are into the 6th week of a Santander mortgage application.

Today, unexpectedly, they dropped the amount they are willing to lend. No other info given. We accepted the lower figure, but have now been told it has to go back to underwriting as it isn't an offer.

Can anyone help? We are a bit confused and can't figure out where we are in the process. Is it normal for Santander to reduce the LTV and then decline anyway?

We are right on the verge of applying with someone else, but how we aren't sure if we should wait. Broker has no more info to offer.

Thrugelmir

What's caused the delay in processing the mortgage application?

Has the property now been valued?

What's the reduction in the amount that they are prepared to lend?

woofdonkey

It's a long story, but there was a typo in our accounts. We've supplied three letters (two from our accountant). I have asked whether they are satisfied with the letters, but nobody can tell me. The accounts have also been resubmitted.

Valuation was instructed about two weeks ago, so I assume it has been done. (We've had our own survey done and it was valued at what we offered.)

Amount they will lend reduced from 249k to 220k, which is OK, we have the equity if we don't repay debts. The issue is that it doesnt seem to be an offer to lend as such. It has gone back to the underwriters as though it was a new application... this is the part we don't understand.

We are 5 weeks in and everyone else is starting to ask questions. The trouble is... we cannot get any answers.

LRmortgage

Santander are crazy slow at the moment, we have cases with them that are taking a week at a time to look at one document or response we have sent.

woofdonkey

That is certainly our experience. They're also very vague in what they ask for (hence the 3 letters to explain the same typo).

moneysaver129

In my experience any of the big headline banks do everything by algorithm. I doubt if a human even looks at the application as the term 'underwriter' seems to mean an automated system as much as a human. I wouldn't have much faith in a high street bank processing your application quickly or efficiently. There is simply no evidence that they do this. It depends on what you asked your broker to look for or what he came up with and why Santander?You may be better looking for a provider who is local and someone you can actually talk with in house (a small Building Society).They will be sometimes a little dearer.

woofdonkey

In should probably update this because it is actually an outdated post - Santander lost our application and have missed a couple if deadlines to get us a decision. We've basically wasted 6 weeks over a series of mistakes at their end. Will be changing brokers tomorrow.

chunkytfg

moneysaver129 wrote: »

In my experience any of the big headline banks do everything by algorithm. I doubt if a human even looks at the application as the term 'underwriter' seems to mean an automated system as much as a human. I wouldn't have much faith in a high street bank processing your application quickly or efficiently. There is simply no evidence that they do this. It depends on what you asked your broker to look for or what he came up with and why Santander?You may be better looking for a provider who is local and someone you can actually talk with in house (a small Building Society).They will be sometimes a little dearer.

Not my experience. I had Nationwide's underwriter ring me to confirm some details before they approved my mortgage. My payslip didn't match my salary as i'd stated no overtime or extras as I wanted the application to be based on my base salary and coz my payslip had both overtime and extras on it plus I get paid 4 weekly(13 times a year) the numbers were all over the place. The guy seemed really nice and easy to talk to, no pressure or stress just chatty and willing to help.

Oh and 6 days from submitting application to approval including a valuation survey.

moneysaver129

woofdonkey wrote: »

Santander lost our application and have missed a couple if deadlines to get us a decision. We've basically wasted 6 weeks over a series of mistakes at their end..

Sadly a common situation with the 'automated' systems of headline rate chasing big banks. Probably best use word of mouth with friends or work colleagues to find a reasonable company. Basically try and get to speak to someone face to face who actually has some influence on your application. You will never get that with the conglomerates. Its all algorithms.

woofdonkey

They've kicked the application back into their queue because they requested evidence that we had already provided more than once. So my gut feeling is that you are correct, and they rely on automatic decisions for straightforward clients. It would appear that they struggle with anything out of the ordinary (in our case, a correction part-way through). Perhaps it's easier to put those cases back to the bottom of the pile in the hope someone else will deal with it.

I would certainly suggest that anyone who risks Santander stays on their broker's case and doesnt allow them to make excuses for the lender!

DottieDam

woofdonkey wrote: »

They've kicked the application back into their queue because they requested evidence that we had already provided more than once. So my gut feeling is that you are correct, and they rely on automatic decisions for straightforward clients. It would appear that they struggle with anything out of the ordinary (in our case, a correction part-way through). Perhaps it's easier to put those cases back to the bottom of the pile in the hope someone else will deal with it.

I would certainly suggest that anyone who risks Santander stays on their broker's case and doesnt allow them to make excuses for the lender!

Feel the same, our complication though was buying a house in Scotland. From not understanding the Home Report to being wrongly charged for a valuation, we are seven weeks into an ongoing nightmare!

I'm wondering if we have the same broker (L&C?) because after two weeks of no news whatsoever we were chasing them and they kept saying 'we expect an update Friday' then it was 'hear shortly'. Turns out they were fobbing us off and not chasing TSB on our behalf as if they had they would have realised it was sat on someones desk not doing anything!

At first I thought brokers were supposed to make the process easier but when something goes wrong and you can't contact the lender direct it's agonising.

Fingers crossed for a decision this week for you!