This little guy arrived into the office a bit battered today. I can relate.

Santander have screwed us over royally on our new house.

* They originally confirmed they would accept the home report valuation.

* A clerical error on their side meant they accidentally booked a 2nd valuation. We were told it wouldn’t affect us or thier acceptance as it was being done for audit purposes only.

* This 2nd valuation, which was never meant to be done, was done by a valuer which is wholly owned by Santander themselves, so no surprise it came in at a whopping 5% more conservative on valuation.

* Despite this being a valuation booked in error, and their assurances it would affect us, they now won’t honour the original valuation, despite verbally approving it, meaning we need to find an extra 5% capital.

* Due to massive backlogs across the mortgage industry at the moment (due to law changes) It took them until yesterday to decide this. Less than 48 hours before the deadline the seller issued for us to complete by so we can’t go elsewhere.

* Due to this screw up on their side they have now been unable to process the paperwork in time for today’s deadline (as it’s been escalated up the chain on their side, meaning more delays).

* So, as it stands, they want us to pay a significantly higher level of interest (due to us only having 5% lower deposit) and more pressingly we have missed the deadline on the house to finalise the paperwork.

I have no idea what happens from here.

If the seller insists on changing the completion date (their current condition for missing the deadline) then we’ll walk away. We paid more than the place was worth to secure that date so won’t accept any movement.

If Santander refuse to honour their original verbal acceptance then we’ll have to pay a higher monthly fee and interest (and starting again elsewhere now would definitely mean we loose the house due to the delays of starting over).

I have no idea what happens from here. What I do know it’s been a 2 weeks of stupid stress due to a banks error and slow processes (no doubt not just for us but the sellers as well).

We now have to wait until Tuesday after Easter to see what happens next.

If you are considering Santander at the moment, I couldn’t recommend them. We had them for our last mortgage as well and they were fine, but the massive backlog they current have are clearly leading to mistakes and miscommunication.