Mortgage Advisor - recommended Santander for a new build in our garden

oweri02

So two year mortgage, knowing after a year we'd want to move into the new house. Half capital, half interest only to allow the maximum £s for the build.
So I contact Santander asking them if we could split the deeds, move the mortgage to the new, bigger, one extra bedroom and 3 extra loos/showers etc and a garage, clearly significantly greater value. Computer says no.
So I ask to log a complaint: They take complaint and say "its against our policy" and only option is to go with a different lender.
Two year mortgage and 3% clause to close it early, so £11k pay back
Asked did they pay commission to the advisor - yes - so you paid him to effectively lie to you, recommend you to us for something you wouldn't allow to happen
1) won't split deeds
2) would have to pay to exit
3) not sure if they'll allow us to let our current property
4) we can't now afford to continue so will end up having to sell the current property, losing £1k a month in rental
5) won't be getting my business ever again
Anyone got any other thoughts as this seems totally unfair
Thanks

ACG

Your complaint would be with the broker not Santander by the sounds of it. 
Santander gave you the money based on the information they were given. If that information was wrong it was either your fault or the brokers. If you were open and upfront about your plans then it would be the broker. 

Go and speak to the broker and see if they can fix the problem or put it right. 

[Deleted User]

I used to work with a large brokerage and we got sent a summary of a complaint that was received in our company.  As a teaching moment i think.  
I only mention as it is pretty much a carbon copy of this and the broker put it with santander as well and the outcome wasnt great in that case for the broker at least, was probably a good outcome for the client. The company ended up paying his ERC to allow a remortgage to a new lender as an apology.

They never allow titles to be split so it would appear to be the wrong lender if the broker was aware.
Dig out your initial disclosure documents from the broker and it should say where to complain

If you can prove that the broker was aware of this intention i cant see how it can be defended.  Other lenders allow titles to be split and revalued but santander definitely do not 

oweri02

This was my opening email to him

My son Isaac Owen mentioned you in passing yesterday when I was talking about getting a mortgage.

Any chance you can advise when you might be available to discuss please?

My house, address given - estiamted worth £500k.with an £86k mortgage outstanding. Freehold site, and current lender First Direct pushed us to split the deeds, that hopefully completing shortly. Ours the one with solar panels in the link above, side garden obvious I hope

Planning to put a 4 bed detached + garage in the side garden. Planning approved, Building Regs conditionally approved. Estimated build cost £330k, so looking for ~£420k mortgage

My annual salary is £xk with a £yk bonus. I am 50 years old, and will work as long as I need to

If you need to see drawings of property etc, please let me know

Are you able to assist? 
-----------------------------------
So pretty up front. Sadly the splitting of the deeds was a no-no for Santander to take on the property so we stopped that - hindsight a wonderful thing eh?

ACG

Personally, I do not think your email makes much sense. To me it reads more like FD are wanting you to split the deeds rather than you wanting to. I would probably have asked a few more questions to understand what it was you were wanting to do before making an application anywhere. 

If that was the only time it was mentioned, I think it is a little 50/50, the broker could have done more but you could have explained it better and made sure that the broker understood splitting the deeds was important to you - because it is not normal (in 10 years, I think we have only needed to do it 2-3 times).