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Mortgage Advisor & Director
Santander are a high street mortgage lender which means their criteria can sometimes be stricter than specialist mortgage providers. But if they have rejected you for a mortgage, you’ve come to in the right place.
We understand that being declined is stressful, but we can help. Although this feels like a setback, you could still have options, which we will explore here.
Why would Santander refuse to offer a mortgage?
If Santander have declined your mortgage application, this would usually be because you failed to meet either their affordability criteria or their eligibility requirements.
As a high street lender, they can be more stringent with issues such as bad credit or complex income. If your application contains these risk factors, it could be declined:
- At the decision in principle stage
- Upon full application
- By Santander’s underwriters
- Before completion
If Santander rejects or withdraws your mortgage application at any of these hurdles, the thing to remember is that you could still have options; but it’s wise to seek professional advice from our mortgage brokers to ensure that you choose the right one.
Common reasons Santander reject mortgage applications
Here are the most common reasons Santander decline applicants for a mortgage:
1. Bad credit
Santander can offer mortgages to borrowers with minor forms of bad credit, such as the occasional missed payment, but anything more serious than this might mean delaying your plans. For example, borrowers with CCJs or debt management plans will need to wait until the issue has been discharged for 3-6 years before Satander will consider a mortgage.
2. Not enough proof of income (self-employed)
If you are self-employed and applying for a mortgage with Santander, you will need to produce at least two years’ accounts to evidence your income. Unlike some of the specialist lenders, they will decline applicants who have only been trading for a month or less.
3. Too old for a mortgage
Santander’s age restrictions are less flexible than some of their competitors. They will decline applicants who are 69 at the point of application or 75 at any point during the term. If any part of the mortgage is interest-only, the age caps are even more stringent.
4. Needing government or family support
Many first-time buyers rely on government mortgage schemes or family support products to help them onto the property ladder, but Santander does not offer many of these. Guarantor mortgages are not available through this lender and they do not offer mortgages via First Homes, although Shared Ownership and Right to Buy mortgages are supported.
5. Declined on affordability
Santander are more generous than most mortgage lenders when it comes to affordability, lending up to 5.5 times salary. But most borrowers will only qualify for up to 4.45 times salary mortgages with them, and you will be declined on affordability grounds if your income does not equal or exceed the mortgage amount when multiplied by this figure.
What to do if Santander have rejected you for a mortgage
If Santander have rejected you for a mortgage application, several options could still be available. There might be grounds to appeal against their decision, renegotiate with them or find a new lender whose criteria is more flexible than a high street mortgage lender’s.
But before you decide on your next step, your best bet is to make an enquiry with us to speak to one of our whole-of-market brokers. Launching straight into a re-application without seeking professional advice could mean further damage to your credit reports.
Our broker will guide you through the following steps to get your plans back on track:
- Explore whether there are grounds to appeal against Santander’s decision
- Looking into quick fixes that could resolve the issue, such as credit repair
- Review whether there is better lender to revive your plan with
- Pinpoint the perfect time to re-submit your mortgage application
You can book in a free, no-obligation chat to find out what your options are below:
Get your mortgage back on track with Teito
Are Santander a strict mortgage lender?
Santander are more generous with affordability than many lenders on the high street since they lend up to 5.5 times income, while many of their competitors draw the line at 4.5.
Their criteria, in general, is more stringent than specialist mortgage lenders but less strict than other mainstream providers when it comes to risk factors like bad credit. They will begin to consider lending for credit issues such as CCJs at three years since discharge, but more severe issues like bankruptcies and repossessions need to have been discharged for six.
Finally, if you are newly self-employed or an older borrower, you might find that Santander is a stricter lender than some high street providers and most specialists.
Why choose Teito for your mortgage needs?
If you have been declined for a mortgage by Santander, or any other lender, you will need a mortgage broker to oversee your next steps as they are crucial to reviving your plans.
Here are just some of the reasons why people in this situation turn to our brokers:
- Our advisers specialises in reviving declined mortgage applications
- They have access to every alternative lender you could turn to
- We are 5-star rated on leading review websites
- We won’t leave any marks on your credit reports
Ready to take advantage of a free, no-obligation chat with one of our brokers who can help you plan your next move and reignite your mortgage application? Get started here.
FAQs
If you don’t qualify for a remortgage with Santander and an existing agreement with them is due to expire, you are free to find a new lender whose criteria you might fit. It’s a good idea to speak to a broker to help you with your search for a new provider as Santander will place you on their SVR while you are in between deals, and the rates can be expensive.
A mortgage broker can help you find a new lender as quickly as possible, minimising the time you have to spend on the SVR, or avoiding ending up on it altogether.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.