Mortgage Declined By Santander? Here’s What To Do Next.

If you’ve recently been declined for a mortgage with Santander, don’t feel too disheartened, as it doesn’t mean all other mortgage lenders will come to the same conclusion. 

A large high-street lender such as Santander can afford to have stricter lending criteria than others, and each application will be vetted using an automated decision-making process. If your application doesn’t quite fit within Santander’s lending guidelines, you’ll likely receive a frustrating ‘computer says no’ response. 

The good news is your mortgage journey is not necessarily over because of one rejection. We work with lots of specialist mortgage lenders who assess each applicant on a case-by-case basis using human underwriters. This method allows far greater flexibility for accepting applications that might not seem ‘perfect’ when viewed by a computer. 

In this guide, we’ll outline some of the main reasons why Santander would decline a mortgage application, what steps you can take to improve your chances when you re-apply and how Haysto can help make your mortgage possible when other brokers can’t. 

Why Santander might decline your mortgage application

In general, there’s two overarching reasons why Santander could decline your application: 

• You haven’t provided enough evidence to satisfy Santander’s affordability checks and prove your income can cover the monthly mortgage repayments for the amount you want to borrow (this can be a particular issue if you’ve recently become self-employed, for example).  

• Your credit score is too low, typically caused by one or more bad credit issues registered on your Credit Report and/or you’re not registered on the electoral roll at your current address. 

More specifically, your mortgage application could be declined by Santander for several reasons, including: 

• You make large monthly repayments for school fees or student loans which are taken into account by Santander when assessing affordability

• A County Court Judgment (CCJ) was registered on your credit record within the last three months

• A default or missed payment was registered on your credit record within the last twelve months

• You’re currently paying into a debt management plan (DMP)

• You want consent to let a room to lodgers (via AirBnB etc.) in the property you want to buy

• You have a debt relief order (DRO) registered on your credit record

• You have been declared bankrupt at any point or ever been in an individual Voluntary Arrangement (IVA)

• You’re using retained profits or a combination of salary and net profits from your business as your main source of income

• The main source of your deposit is from either cryptocurrency or a private equity loan

• You want to buy a property that will remain unoccupied after completion 

In addition to the above, Santander will decline mortgage applications for particular property types, such as commercial B&Bs, a flat above a pub or food outlet and any self-build project. 

(Source: Criteria Brain )

What steps you should take next

If Santander has rejected you for your mortgage, the one thing you mustn't do is rush in and reapply straight away with other mortgage lenders, expecting a different outcome. 

Applying for a mortgage will show on your Credit Report but won’t show if you were accepted or declined. However, multiple hard search mortgage applications in a short period of time will indicate to a lender that you’ve been rejected and lower your credit score, making it harder to be approved. 

That’s why it’s essential to take your time and follow these steps to give yourself a better chance of getting the mortgage you need: 

• Find out why Santander declined your mortgage. Speak to Santander and establish why your mortgage was declined and what the circumstances were that led to this decision. If the reason given is specific to Santander’s lending criteria (you’ve had a CCJ registered in the last three months or you’re looking to build your own property, for example), you can then search for lenders who will accept these conditions. If it’s a credit issue, take some time to repair your credit score before reapplying. 

• Speak to a mortgage broker. Once you know the issue that led to your application being rejected by Santander, the smart next move is to seek the help of an experienced mortgage broker. Your broker will be able to help rebuild your application and identify lenders who will look more favourably on your case. 

• Apply with the right lender. Taking the time to fix whatever issue led to your application being rejected now puts you in a much stronger position to get the mortgage you need. With your broker’s assistance, you can now reapply with a lender whose criteria are better suited to considering your case. 

How Haysto can help make your mortgage possible

Haysto has a proven track record of securing mortgages for people rejected by mainstream lenders, such as Santander. That’s because we know that automated decision-making simply doesn’t work for most complex issues, and everyone’s circumstances are different. 

A rejection from one lender doesn’t mean all others will do the same. In many cases, the difference between getting a mortgage or not can depend on choosing the right lender most suited to your specific requirements. 

We work closely with several specialist lenders who help people in similar situations every day. These lenders prefer a more human approach to assessing an application rather than a computer-based checklist, giving you a better chance of success. 

All you have to do is make an enquiry and a member of our mortgage team will be in touch to get started.