Santander Mortgage Help

martin195

Hi all,

I’m in the process of trying to acquire a mortgage at the moment via Meridian Mortgages for a Gleeson newbuild, I have a fair score on Experian with no defaults, CCJ, late payments etc.

I was provisionally accepted by Santander and Principality but my broker later said my affordability didn’t suit (since I have both mine and my partners car in my name for the finance).

Anyway, so I decided to attempt a joint application, my partners credit report isn’t great, about 3 defaults in the last three years but no long term debt and short term is less than £800 in total.

I decided off my own back to go ahead and apply at Santander with us both... AIP no problem then moved on to provisional acceptance. We are now at the stage where there is back and forwards of requesting documents, pay slips etc and I also had an email stating the valuation had been instructed.

I did this on my own back and not through Meridian, the broker has come back to me and said when he’s tried Santander wouldn’t entertain it due to my partners credit score with a HTB application.

I must add our independent application with Santander is a 95% LTV.

Anyone care to pass an opinion as to why he may have been declined so early? Have we already passed the credit check stage of the mortgage if we are now at the stage of submitting payslips and valuations have been instructed?

I’m really worried...

My broker

martin195

I might add sorry that we are both first time buyers, currently renting

ray5123

Not sure if this is the case but as far as I'm aware Santander do not offer a 95% mortgage on new builds, maybe this is why it was declined so quick?

kingstreet

Yep.

85% max.

martin195

I don’t understand how it’s so far into the application process then? I have entered into the required information that it’s a new build

kingstreet

You'd have to go HTB to get to 95% on a newbuild with a 75% mortgage, 20% HTB EL and 5% deposit.

I'm not sure you can do HTB EL direct. You certainly can't do it via Santander branches.

Verix

I've recently had a client who has gone to Santander directly and been told that they can get a mortgage despite being in an IVA a few years ago. I know this is completely outside Santander policy but going direct he has been told otherwise.

I think you may be in a similar position where Santander will not do this (as has been mentioned you need a 15% deposit on new build with them) but it probably won't get picked up until with the underwriter, or worse, it goes to full offer and doesn't get picked up until you're nearly ready to complete.

Obviously i'm biased but I would defer to the broker who should know what they're talking about hopefully.

martin195

I’ve just come off the phone with Santander they’ve said

“The broker has a different channel and different offers/products, since you’ve went direct our offers are different, it’s clear on the application it’s a 95% LTV and that the property is new build as we’ve instructed a valuation with legal and general, it has been through the hands of case managers and initial underwriters so if there was an issue I’m sure it would’ve been picked up by now”

martin195

Just to update this thread they’ve bounced back and said exactly what you’ve all said and closed the application.

They’ve advised I start a fresh AIP, so I have... looking for a better suited older property now, thanks for the info everyone.

kingstreet

You can phone a lender three times and ask the same question and get three different answers.