What To Do If Santander Have Refused Your Mortgage

In this article, we’ll look at why Santander may have rejected your mortgage application, what steps you should take if you’ve been declined and how a mortgage broker can still help secure the mortgage you need.

How strict is Santander as a mortgage lender?

Santander is just as strict as other high street banks and building societies with mortgage lending criteria. You might, however, find it particularly difficult to get approved by them if you have certain types of bad credit, such as a default in the last 12 months or a recent CCJ.

The bank is also strict about self-employed customers with declining profits, non-standard construction properties, and borrowers over the age of 70.

If you’ve been declined for any of these reasons or think you might be, don’t forget that the right mortgage broker can help you get your plans back on track, either with Santander after an appeal or with another lender with more flexible criteria.

How long does Santander take to process a mortgage application?

The average time it takes to process a mortgage application from start to finish is around three weeks.

Very straightforward applications might be completed quicker, but if issues such as bad credit or complex income are a factor, it might take longer.

What to do if they have declined you for a mortgage

If Santander has declined your mortgage application or you think there’s a good chance they’re about to, here are the steps to keep your home-buying plans intact…

1. Don’t rush into another application yet
   So many customers turned down for a mortgage by a high-street lender make the mistake of rushing out for a second opinion, but this isn’t the best course of action. Without guidance from an expert, there’s no guarantee you’ll approach the right lender next time, and having two rejections in such a short time could damage your credit report.
2. Find out why Santander wouldn’t approve you
   Gathering the facts surrounding the decision will help you correct any issues that harmed your application or prepare for them next time. If bad credit was the problem, download all of your credit reports so you can see the issue for yourself and have any inaccuracies corrected. Also, be sure to request any survey reports that were carried out, especially if an issue with the property led to this outcome.
3. Enquire with us so we can match you with your perfect broker
   Speaking to the right mortgage broker is the best action if you’ve had an application rejected by any mortgage lender. Enquire about getting started with an advisor today.

Can you appeal against the decision?

Yes, you can. All the information about the process can be found on Santander’s website.

But before you proceed, it is advisable to speak to a broker. They can tell you whether appealing to Santander is a better option than finding an alternative lender.

If renegotiating is your best option, your broker can help you prepare your appeal and give you the best chance of approval the second time around.

Get expert advice immediately if…

• You have 1 or more defaults on your credit report
• You have any form of bad credit, particularly a CCJ
• You are purchasing a property of Non-Standard construction
• You are 65 or older
• You are self-employed with a loss in the last year
• You are classed as having a higher appetite for risk e.g.: you occasionally gamble

Common reasons Santander reject mortgage applications

Recent defaults

Many people who defaulted on a credit commitment last year have had their mortgage declined by Santander. They might tell you that you must wait until your default has been satisfied for at least 12 months before you reapply, but that’s based on their rules and criteria.

The brokers in our network have deep working relationships with other mortgage lenders who can accept customers with more recent defaults than this.

Non-standard construction 

Santander may have offered a mortgage in principle, but declined you when the survey results came in.

This could be because build types such as single-skin construction or non-repaired prefabricated reinforced concrete were found. Santander’s underwriting criteria do not allow them to lend when these construction types are present.

Age limits

If you’re 70 or over, your mortgage application will be declined. Below this age, you’re fine, but this particular mortgage lender’s maximum age at the end of the mortgage term is 75.

Self-employed with a loss in the last year

Some self-employed people might find that they’re offered an agreement in principle, only for it to be withdrawn when the underwriters have examined their finances more closely. This is often because Santander won’t consider offering a mortgage to a self-employed professional who has made a loss during the last 12 months.

A history of gambling

Like many high-street banks, Santander is cautious of mortgage applicants with a history of gambling. Their criteria state that applicants who take part in “frequent and recurring gambling transactions” won’t be considered for a mortgage.

If you gamble regularly or are a professional gambler, there are other specialist lenders available who will still consider your application.

Valuation Problems

Whilst Santander doesn’t impose a minimum property value (unlike most other major mortgage lenders), it could still decide to decline your application or revise its mortgage offer if the valuation report recommends the purchase price is above the property’s true value.

Affordability

If you’ve only recently become self-employed, it can be tricky to get a mortgage with Santander if you have only one year’s trading history. A minimum of two years is typically required for a mortgage with this lender. Professional landlords using rental income as their primary source of earnings will also not be accepted.

Other reasons

There are a host of other reasons why Santander might decline your mortgage application; these include:

• Having had an Individual Voluntary Arrangement (IVA)
• Employment salary paid in cash
• Submitting a mortgage application with a guarantor
• The property is located in either the Channel Islands or the Isle Of Man
• Proof of earnings is from stipend income
• The property was purchased at an auction
• A remortgage application to raise equity was submitted to pay a tax bill or to purchase a commercial property.
• Receiving a gifted deposit from someone who will be living in the property with you but not named on the mortgage
• The source of the deposit was from cryptocurrency/bitcoin

Whatever the reason you were declined, we can match you with a broker who specialises in solving that issue and has a track record of helping customers overcome it.

How long does it take to re-apply for a mortgage?

This all depends on why Santander initially declined you. If, for example, you have severe adverse credit on your record or you need to use a guarantor as part of your application, then this may not be something that can be rectified quickly.

But if it’s something quite straightforward or specific to this lender’s criteria, you may want to consider re-applying immediately.

Once you know why your application was rejected, you can take steps to resolve these issues thoroughly. When this has been done, with the help of a mortgage broker, your new application should hopefully take as long as is standard to process and get the approval you need.

How Online Mortgage Advisor can help

Seeking advice from the right mortgage broker will give you the best chance of turning that rejection into a mortgage promise. Whether the best course of action is to renegotiate with Santander or launch a fresh application with a lender who better understands your needs, your broker will take the lead and increase the likelihood of a positive outcome. We offer a broker-matching service that will ensure you’re introduced to an advisor with the right experience in this area.

Make an enquiry or give us a call on 0330 818 7026 and we’ll match you with an appropriate mortgage advisor today.