Brokers have accused Santander of putting borrowers at “massive financial risk” by withdrawing mortgage offers at the last minute due to an internal error.
Clients have had their mortgage offers withdrawn after a routine check of Santander’s systems found the lender was not asking borrowers for details of all external mortgages. Santander calls these “retained properties”.
Start Financial Services manager Tom Cleary says his client had a mortgage offer withdrawn one working day before completion because he owned a buy-to-let property – the details of which were never requested.
Cleary says: “We all make mistakes but where a case has exchanged and is due to complete, they have put clients at massive financial risk under the guise of treating customers fairly.”
A Santander for Intermediaries spokeswoman says: “We request all applicants for purchase or remortgage applications inform us of any retained properties.
“Following a routine check of our IT systems, we found some offer letters were not detailing customers’ intentions correctly and had been produced without this specific clause.
“We have reissued offers to those customers whose situation may have changed post application. This has been done to ensure we continue to treat customers fairly and ensure ongoing affordability.”
Your Mortgage Decisions director Dominik Lipnicki says: “I find it shocking Santander can take action on a mortgage offer after it has been made, especially at such short notice before completion.”