Had a mortgage rejected by Santander? No need to fret - receiving a rejection from one mortgage provider doesn’t mean your chances of becoming a homeowner are scuppered
While large, mainstream banks like Santander aim to cater for everyone, the reality is that if your circumstances are slightly niche it’s unlikely they’ll be able to accommodate you. Banks and building societies also tend to have strict eligibility criteria, and lack the flexibility a more specialist lender can offer
If you’ve had a mortgage rejected by Santander, or suspect that you’re unlikely to meet this lender’s requirements, keep scrolling. This guide covers common reasons Santander decline mortgage applicants, what to do if this happens to you, and how an independent broker can help secure you a more suitable deal
Is Santander the right lender for me?
Mortgage providers are like fingerprints - every one is different. This means that, depending on your circumstances, some lenders may be more suitable and therefore more likely to approve your mortgage application than others.
Santander offer a range of mortgage products, including 5% deposit options for first-time buyers. Maximum lending sits at 4.45 times borrowers’ annual salary, although 5 to 5.5 times income mortgages have recently been brought back for eligible applicants.
However, there are a number of limitations; older borrowers, the newly self-employed, multi-applicants, and those hoping to apply with a guarantor are unlikely to make the cut.
Santander also has strict rules when it comes to applicants with previous credit issues, declining anyone who has experienced any of the most severe forms.
What should I do if Santander decline my mortgage?
If Santander rejects your mortgage application, don’t lose hope - try and see it as an opportunity to find an even better deal. Here are a few tips on what to do (and more importantly what NOT to do) after being declined
Try and resist the urge to reapply straight away. Funnily enough, resubmitting the exact same set of information is likely to result in the exact same outcome, even if you approach a different lender.
Too many applications for finance within a short space of time are also detrimental to your credit file, and will be visible to potential lenders in the future. You’ll want to keep these to a minimum so you don’t look desperate and stand a chance of being accepted later down the line.
Find out why Santander rejected you
If you’re declined a mortgage, the most important thing to do is find out the reasons why. Not every lender will offer this information straight off the bat, so be prepared to chase - it’ll be worth your while.
The issues could be lender-specific, or they could stand in the way of your next application. Either way, it’s good to know why you didn’t make the cut so you can put steps in place to resolve the issue, wherever possible.
Speak to an advisor at The Mortgage Hut
Rather than trying to understand the reasons for being declined or how to rectify the situation, simply call 02380 980304 and ask one of our expert advisors for assistance. Our team deals with this sort of thing every day, and are more than happy to help.
Why do Santander reject mortgage applications?
Santander has an extensive list of eligibility criteria, and if you fail to meet the requirements the likelihood is they’ll reject your mortgage application.
Even if you’ve had an agreement in principle (AIP), this doesn’t mean your application is guaranteed to be accepted. This is because AIPs only cover top-level requirements and are issued on a conditional basis, subject to more extensive checks.
Some of the most common reasons applicants might be refused a mortgage from Santander include:
All lenders have minimum income and affordability requirements, and it’s an area a lot of applicants come unstuck.
Santander can be particular about what types and how much weight they are willing to give certain types of income. This can be problematic for those hoping to subsidise their earnings with things like ad hoc overtime, bonuses or commission. Unfortunately, unless the payments are regular or guaranteed, only a maximum of 65% of secondary forms of income are considered.
When calculating your affordability, Santander want to know about all your credit commitments, irrespective of whether they are currently being repaid, to determine whether you can comfortably afford a mortgage on top of your existing outgoings. If your debt-to-income (DTI) ratio is too high, you’re liable for rejection.
Finally, while Santander offer mortgages of up to 5 - 5.5 times borrowers’ annual income, these more generous allowances are only for applicants applying for those earning upwards of £45,000 a year, and for mortgages of 75% loan-to-value (LTV) or below. If you don’t meet these requirements, you will be restricted to 4.45 - 4.5 income multiples
Bad credit history
Lots of lenders can be sceptical about lending to applicants who have suffered instances of adverse, but many are willing to consider the recency and severity of the issue before reaching a decision.
Unfortunately, Santander does not fall into this category, and has very strict criteria surrounding what is and isn’t accepted of mortgage applicants. Anyone who has previously been bankrupt, had a property repossessed by a mortgage lender or subject to an IVA will be turned away, regardless of the circumstances or how long ago the instance occurred
Not enough self-employed trading history
Self-employed applicants can be perceived as higher risk as their income is not guaranteed and liable to fluctuations. Fortunately, many lenders are becoming more accepting of such applicants, provided you can prove your income is steady and sustainable
Santander does not accept applications from customers who have been self-employed or owned their business for less than two years. What’s more, if accounts are marked with a negative 'going concern’ qualification (i.e. your business is losing money) applications are also likely to be declined.
Such practices are fairly commonplace in mainstream banks and lenders, so if you’re newly self-employed it’s best to steer clear, and instead approach a self-employed mortgage specialist with a more flexible approach.
Exceeding the maximum age thresholds
To mitigate the risk associated with older borrowers, most lenders impose lending caps for the maximum age for taking out, and repaying, a mortgage.
Santander only considers applications whereby the mortgage term does not exceed the oldest applicant's 75th birthday (70th birthday for interest only mortgages), and will not lend beyond an applicant's intended retirement age.
Compared to other providers Santander has particularly stringent lending terms and a low upper age limit, so don’t lose hope if you’ve been declined a mortgage because of your age - there are plenty of more generous mortgage deals for older buyers out there.
Speak to an independent broker after a mortgage rejection
If Santander (or any mortgage provider for that matter!) has declined your application, we’re here to help
At The Mortgage Hut, we have access to over 100 different mortgage providers, from high street banks and building societies to specialist lenders operating in the nichest fields. So no matter your circumstances, there are usually options available - and our expert advisors know exactly where to look for them.
After a quick initial consult, a member of the team will be able to advise whether you’re best placed to tweak your application and reapply to Santander, or suggest another lender who can offer you more flexible, competitive lending terms for your current circumstances
Don’t let a mortgage rejection get in the way of your quest for homeownership: submit an online enquiry via our website, or pick up the phone and call us directly on 02380 980304.
Santander mortgage FAQs
How long does it take Santander to process a mortgage application?
On average, it takes around three weeks for Santander to process a mortgage and provide you with an answer. If your circumstances are very straightforward you may get a response in a matter of days, but for more complex situations it may take longer.
Why did Santander give me a AIP then reject my application?
An agreement in principle is a conditional offer; if Santander issued you with a AIP but has since refused your mortgage offer, it’s likely new information has come to light during underwriting which goes against their eligibility criteria.
Can I appeal against a mortgage rejection from Santander?
It is possible to appeal Santander’s decision to reject your mortgage, but it’s worth speaking to a broker first to see whether you’d be better off approaching a different lender instead.
Can I get a guarantor mortgage with Santander?
No, Santander do not consider applicants who wish to apply for a mortgage with a guaranto
Can I get a Santander mortgage if I have a CCJ?
Santander will consider applicants who have been issued with a county court judgement (CCJ), although you’re unlikely to make the cut if it is unsatisfied, or if the date of issue is within the last three months.
What’s the maximum number of applicants for a Santander mortgage?
Santander accept a maximum of two customers per application