It’s one of the most frustrating experiences a client can face. A mortgage application declined, despite a solid deposit and a clean credit record. According to Santander’s latest insights, there are a few hidden reasons this happens. In this article we are going to briefly discuss Santander’s findings on why increasingly some re mortgage applications fail, and how a mortgage adviser can help.
The Remortgage Dilemma
According to their latest market update, Santander has become a bit more cautious about remortgage applications where the client wants to raise funds to replenish savings or repay parents who helped with their original deposit. While many would see this as prudent money management, Santander’s internal lending policy often flags it as “unacceptable capital raising.” There are many potential reasons for this that we can all speculate on, but in our opinion, it seems that Santander simply doesn’t want their borrowers to put themselves into more debt, when they are already perceived to be unable to manage their own finances. Whether this is true or not. I.e. If you couldn’t save your own deposit and had to borrow from family, why would Santander risk to let you borrow more to pay off your family’s deposit contribution, adding more debt to you.
Not All Lenders Are the Same
Other lenders, however, take a much more flexible view. Many are comfortable with clients using equity for legitimate family or financial planning reasons.
This is where independent mortgage advisers like ourselves at Oportfolio play a crucial role. They understand which lenders are more adaptable and can help structure the application in a way that satisfies underwriting criteria. There are literally hundreds of mortgage lenders in the UK mortgage currently, with thousands of mortgage products. So going it alone without expert advice is a bit of a minefield.
Advisers Dominate the Market
Santander themselves noted that 85% of their mortgage business comes via advisers, with only 10% direct and 5% digital. That statistic alone speaks volumes. Professional guidance is no longer a luxury…it’s an essential part of navigating complex, evolving lender policies.
Speak to a Mortgage Adviser
Investing in the property market has always been and continues to be a great way to invest your money and build your wealth. If you are looking to purchase a property but have seen your mortgage application fail, there may be hope still. Please feel free to contact our team of mortgage experts at Oportfolio Mortgages, today.
