BTL Santander mortgage declined

daniyal12

Hi I was wandering if anyone could help or guide me to what I need to do. I am in the process of buying a 3 Bed semi detached around 5 miles from my current address which I wanted to purchase as a BTL, I currently live in a 2 bed terraced. I was pushed in to using the estate agents broker. 
He applied through Santander and told me i had nothing to worry about, 3 weeks later he told me santander had declined the mortgage due to the new property being larger then my current residential, and they think I am trying to do a back door BTL. He has said I could potentially apply with precise mortgages but the interest rate is almost a percent higher and the product fee is almost 5k, he has said he cannot appeal or contact santander as thrir decision is final. I have already paid him £500 broker fee so don't want to go elsewhere and pay again
 Does any one know if hes correct? I genuinely wanted to purchase as a btl as it is just me and my wife so we do not need the additional space

[Deleted User]

Buying a bigger property that the one you live in will always raise suspicions.   Unfortunately there is no way of knowing how the underwriter will feel on the day so its difficult to pre-empt a lenders decision. 

They will be thinking that you are more likely to live in the bigger property and rent out your current one.  Most people would do that and they dont want the risk so wont change their mind.  Dont think i have ever managed to get an underwriter to change their mind on this kind of thing.   

Going to precise seems a strange decision as they are just as likely to decline on back door as anyone else. 

Some lenders assess BTL on personal income rather than the rental income.  These ones are a bit easier to get through as they know you could do it as a resi if you wanted to.   

Unless it also fits on personal income affordability tests then I wouldnt have personally put it through as it would be declined 99 times out of a 100. 

[Deleted User]

I have a BTL with Santander 
3 beds 
Mine is 5 ...... but I am wracking my brains as to whether I was asked the size of my own property ( I went through a broker too ) 

[Deleted User]

Densol said:

I have a BTL with Santander 
3 beds 
Mine is 5 ...... but I am wracking my brains as to whether I was asked the size of my own property ( I went through a broker too ) 

you probably weren't but if the underwriter was suspicious they would just check on zoopla or something to see what type of property you lived in