Santander mortgage timeline

NatNat77

Here I am back on this thread waiting for a new offer from santander, after having an offer approved in November for the same amount we're trying to borrow now. I've just posted this on the mortgage broker ask me anything thread but wanted to post it here too in case any of you have had a similar experience, ideally with a positive outcome!

How worried should I be about this situation please? Sorry, I tried to keep it short but want to provide all the relevant info. 

So, we're long term existing mortgage customers of santander with approx £100k outstanding on our current house. We're looking to port our mortgage and borrow a further £290k. Applied and had mortgage approved in Nov last year on a purchase that has since fell through, we also lost our buyer.

We found a new property (and a new buyer) in March so we got back in touch with santander, and I (naively) thought switching our offer over to a new property would be a formality, as I've had a 6k payrise since then and hubby is a director of his own construction company, which thankfully hasn't suffered through covid. Joint income now 85k approx. Hubby's wages have been consistent since company started 4.5 years ago. Previous ltv was 37% and new ltv is still less than 50%. Santander initially told me all the info we previously sent for hubby was still in date (accountants cert) and I just had to submit a recent payslip, so I wasn't overly worried.

Until Santander called. They've now asked our accountant to provide a letter confirming the company's net profit since 1 September last year to end of feb, projected earnings from 1 March to end of August, the extent of government assistance, and justification for why there was a dip in turnover from Jan to March. The company took the bounce back loan at the accountants suggestion, which they haven't used, but they'd already taken that when we applied before. What went in the bank did dip to £76k in Jan to March, from £110k in August to October (assuming that's what they looked at when processing our previous app, company has business account with them) but surely that's not enough to make the bank panic? Even if the company folded tomorrow hubby would go and work on site and earn the same he earns from the company. The dip in turnover is due in part because of Christmas shut down, losing time due to winter weather, and finishing a couple of jobs and having to wait 2 months for payment on new ones, while in the meantime they're paying out for wages/materials etc.

The accountant has agreed to provide a letter but after being in this process since last September I'm stressing now, as pretty much everything that can go wrong, has, and I'd really like some reassurance. I understand the banks are tightening up on the self employed but this seems a bit OTT to me, what does the accountant need to say to satisfy them?! Obviously they have to say it like it is but is this normal and am I worrying over nothing? If they won't lend us the full amount will they lend us some of it? This new property is £200k cheaper than the last but we're trying to borrow the same so we can use our cash to extend and improve the new house. I'd prefer not to borrow less in case they won't lend us what we need later.

Hubby's company has just won a big contract but we have nothing in writing yet, should we wait until we do before we submit the letter? Trouble is this contract will probably mean they have to use the bounce back loan (or some other loan) quite soon as they'll need it for cash flow, if they can avoid using it until we get the offer will the bank later pull our offer if they use it? And if we use it before will they just say no? 

I know no one can probably say with any certainty but it would be really good if any experienced brokers can help set my mind at rest. Many thanks xx

I swear if this ever goes through I'm never moving again! 

Cookie211

Wd85 said:

I got mortgage offer yesterday do Santander run another credit check before completion 

Congratulations 🎉 

Cookie211

We still waiting on a valuation which seems to be taking forever 

RJM90

Well we’ve pulled out of our property after receiving a pretty grim building survey. Cancelling our application with Santander tomorrow and back to the house hunt!

Cookie211

RJM90 said:

Well we’ve pulled out of our property after receiving a pretty grim building survey. Cancelling our application with Santander tomorrow and back to the house hunt!

So sorry to hear that, Santander mortgage offer last for 6 months, you can find another house and your broker can let Santander know for them to do a valuation and change of address 

Sierra_Juliette

Cookie211 said:

Sierra_Juliette said:

Cookie211 said:

RJM90 said:

Cookie211 said:

RJM90 said:

Hi everyone, thought I’d join in after reading through for a while! Cookie, did you get the house in the end?

29/4 - DIP and full application
1/5 - Santander asked for further documents

Hi no the vendor have taken the house off the market the day we had our full mortgage offer, we have viewed a few but have finally fallen in love with a much better and bigger house, they have accepted our offer so we waiting for a valuation, only thing is the house is going through probate but the EA has looked at the will and it don’t look to complicated so fingers crossed we won’t have to wait to long, good luck with yours 

Wonderful! I love the fact that there was bigger and better waiting for you! Gives us all encouragement if for whatever reason our house doesn’t work out for whatever reason! Hope this all goes well for you!

Thank you, I was devastated after we lost the house, felt like there were no houses on the market to be honest, when we viewed some houses we upped our budget but they all needed so much work and the rooms didn’t works for us at we a family of 7, I found this new house which wasn’t on the market yet as I was messaging a EA on Facebook and he told us bout it, we had first viewing, hardly anything needs doing just making it our own, plus there’s a extra bedroom and a conservatory which is fabulous, I now know everything happens for a reason lol we got to put more deposit down but as the house is going through probate it just gives us extra time to save, hope yours is going smoothly 

Hope everything works out well for you this time Cookie 😊🤞🏻

Thank u, hope yours is going smoothly, never been so stressed in all my life lol hoping the next few weeks will go quick haha 

We’ll see tomorrow when the MB opens again 🙈 you’re right about the stress levels - I can’t wait until it’s all over and hopefully finalised 🤞🏻

Baby due in July so hoping all is done quick enough to have us in by mid June 😃

dj1471

FYI Santander are working today, just received my mortgage decision (went to underwriters Thursday afternoon).

ubayd95

dj1471 said:

FYI Santander are working today, just received my mortgage decision (went to underwriters Thursday afternoon).

Is it good news for you?

dj1471

ubayd95 said:

dj1471 said:

FYI Santander are working today, just received my mortgage decision (went to underwriters Thursday afternoon).

Is it good news for you?

I think so... mortgage approved but I’m not sure if they’ve done the valuation yet. The agent was whinging that none was booked in yet but I suspect they’ll do a desktop one (under 60% LTV). I need to call them to pay the product fees (phone lines not open today) so I’ll ask tomorrow.

RJM90

Cookie211 said:

RJM90 said:

Well we’ve pulled out of our property after receiving a pretty grim building survey. Cancelling our application with Santander tomorrow and back to the house hunt!

So sorry to hear that, Santander mortgage offer last for 6 months, you can find another house and your broker can let Santander know for them to do a valuation and change of address 

oh brilliant! I didn’t know that and I guess it’ll put us in a good position if we do find something else. I presumed that because it would be a different property and could be a slightly different price I’d have to start all over. Thank you for letting us know.

as it’s a relocation we’re even considering moving into a rental in the area to get the girls in our preferred school and then taking our time to find the best property for us.