Santander Approved Application But Declined Property

Awayfrommydesk

We currently have a mortgage with Santander. We've decided to move to a slightly bigger property and opted to port our mortgage and take additional borrowing with Santander.

Santander instructed valuation on the property which took place on the 17th of October. Then Santander did all of the credit checks and asked for payslips. They messaged us on the 28th of October to say that our application has been accepted and they would be sending us documents in the post. Great.

I called them today because we were yet to receive anything, only to be told that the property we wanted to buy was un-mortgageable due to it's proximity to commercial properties (local pub and corner shop) and they were unwilling to lend.

I'm absolutely devastated. They've told me that there is no dispute process. 

Thing is, this is a bit of a dream property for us. However, I think the only way we could purchase it would be to sell our current home (we have a buyer) pay off the mortgage (incurring unavoidable early repayment fees of £6000) and take out a whole new mortgage with another lender. 

Is this the only way forward? Does anyone have any advice please 🙏

MWT

Not really any other options as you can only port the mortgage if the new property meets the lenders requirements, which your chosen property does not...

How close is it to the offending commercial properties?

TheSpectator

Other lenders may have same view and even if you do find someone to lend you are likely going to have difficulty selling in future.

blaise802001

I had similar with Santander a few years back. Refused to lend as was next door to a fish and chip shop. I had to pull out of the purchase 😥

amnblog

Take this as a warning against buying a property that will be tricky to mortgage and therefore may be difficult to sell later.

Awayfrommydesk

MWT said:

Not really any other options as you can only port the mortgage if the new property meets the lenders requirements, which your chosen property does not...

How close is it to the offending commercial properties?

I thought as much. Thanks for your response.

To the right of the property, across the road is a pub. And across the road opposite the property is a corner shop. It's near the center of a small village.

Awayfrommydesk

amnblog said:

Take this as a warning against buying a property that will be tricky to mortgage and therefore may be difficult to sell later.

Thanks for commenting. I appreciate what you are saying and where the lender is coming from. 

It's likely we will still proceed. It's a lovely detached property which meets all our needs and we intend to stay forever. However I understand that this is probably often said and rarely done! 

housebuyer143

Awayfrommydesk said:

amnblog said:

Take this as a warning against buying a property that will be tricky to mortgage and therefore may be difficult to sell later.

Thanks for commenting. I appreciate what you are saying and where the lender is coming from. 

It's likely we will still proceed. It's a lovely detached property which meets all our needs and we intend to stay forever. However I understand that this is probably often said and rarely done! 

I wouldn't worry. You bought it and lots of lenders will lend on it, buyers just need to be mindful and use a broker.