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Turned down for add'l borrowing on home mortgage because I have 5 BTL properties
bargainbarmy
Posts: 295 Forumite
Hi I wondered if anybody could give me some advice about what to do about this.
I am with Nationwide on their variable rate of 4.69% and I am very happy with this rate so wouldn't want to move lenders unless I had to. I have 5 BTL properties that I own with my sister in a limited company, and I have another BTL that I own with my wife that we purchased in March 2008. My wife and I paid £81K for this property and ploughed all our £25K savings into it with £12K deposit and £13K doing it up. Prior to May of this year it would have sold for £120K done up which is what we tried to do. Obviously the market collapsed overnight and we could not sell it. We have now rented it for £500pcm and the mortgage payment and service charge comes to £300.
Anyway to cut a long story short we need to recoup our £25k savings as we need a buffer in our bank account for a rainy day. We are making £200 per month on this property and as regards all the other BTL they are all rented out and we are making about £400 profit on those in the limited company.
We owe £7k on 0% credit cards which we will pay off at the end of this month and also have a unsecured personal loan with natwest which has £13k outstanding on it. We have no other credit commitments but we also have no other savings left now in the bank.
Our home mortgage with Nationwide has £120K outstanding on it and the property is now realistically worth £450K (valued two years ago at £550K for mortgage purposes). We applied to borrow an extra £40k and because I was doing an equity transfer (I was putting my wife onto the mortgage so her salary could be taken into account) it had to be manually checked at their Head Office. I earn £38K and my wife earns £8k (part time). They have turned us down as they say our income isn't enough to cover the extra borrowing. They also said they couldn't be sure what the extra borrowing was for. i.e they thought we were using it to plough into our BTL properties. I had told them it was to pay off existing borrowing and to fund a new conservatory/kitchen.
My sister earns £200K a year so she is able to prop up the BTL business if ever there was a shortfall meeting the mortgage payments. I even told Nationwide that my sister would act as Guarantor for the extra borrowing but they wouldn't have any of it.
The lady at Nationwide told me to wait until the Transfer of Equity was completed and then re-apply as it would just be dealt with by branch and basically a computer makes the decision as opposed to it being manually checked.
Any suggestions as what I should do cos we have no spare cash at all and desperately need to get our money back? Really desperate now.
I am with Nationwide on their variable rate of 4.69% and I am very happy with this rate so wouldn't want to move lenders unless I had to. I have 5 BTL properties that I own with my sister in a limited company, and I have another BTL that I own with my wife that we purchased in March 2008. My wife and I paid £81K for this property and ploughed all our £25K savings into it with £12K deposit and £13K doing it up. Prior to May of this year it would have sold for £120K done up which is what we tried to do. Obviously the market collapsed overnight and we could not sell it. We have now rented it for £500pcm and the mortgage payment and service charge comes to £300.
Anyway to cut a long story short we need to recoup our £25k savings as we need a buffer in our bank account for a rainy day. We are making £200 per month on this property and as regards all the other BTL they are all rented out and we are making about £400 profit on those in the limited company.
We owe £7k on 0% credit cards which we will pay off at the end of this month and also have a unsecured personal loan with natwest which has £13k outstanding on it. We have no other credit commitments but we also have no other savings left now in the bank.
Our home mortgage with Nationwide has £120K outstanding on it and the property is now realistically worth £450K (valued two years ago at £550K for mortgage purposes). We applied to borrow an extra £40k and because I was doing an equity transfer (I was putting my wife onto the mortgage so her salary could be taken into account) it had to be manually checked at their Head Office. I earn £38K and my wife earns £8k (part time). They have turned us down as they say our income isn't enough to cover the extra borrowing. They also said they couldn't be sure what the extra borrowing was for. i.e they thought we were using it to plough into our BTL properties. I had told them it was to pay off existing borrowing and to fund a new conservatory/kitchen.
My sister earns £200K a year so she is able to prop up the BTL business if ever there was a shortfall meeting the mortgage payments. I even told Nationwide that my sister would act as Guarantor for the extra borrowing but they wouldn't have any of it.
The lady at Nationwide told me to wait until the Transfer of Equity was completed and then re-apply as it would just be dealt with by branch and basically a computer makes the decision as opposed to it being manually checked.
Any suggestions as what I should do cos we have no spare cash at all and desperately need to get our money back? Really desperate now.
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Comments
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Your really desperate to have money for a rainy day?
Weird, sell a house then? Or try another lender?
Very simple.0 -
Your really desperate to have money for a rainy day?
Weird, sell a house then? Or try another lender?
Very simple.
Sell a house? Where have you been the last 5 months? In case you didn't fully understand my thread i had tried to sell the property I bought but couldn't. ......and why is it wierd to want to have money in your bank account? It is very difficult to plan or deal with emergency expenditure if you have no savings at all. I am just basically just trying to release some of the money that I have put into the latest property.0 -
Also I am thinking I will probably get the same answer from other lenders.0
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You havent been declined because you own 5 BTLs. You have been declined because you do not fit the affordability....you say that yourself in the post. So I am confused!
With regards to the ToE - Have you factored in the cost of stamp duty?0 -
If your personal income can support the higher borrowing you would probably be ok with another lender ... Nationwide are just particularly funny about Buy to Lets in the background.0
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You havent been declined because you own 5 BTLs. You have been declined because you do not fit the affordability....you say that yourself in the post. So I am confused!
With regards to the ToE - Have you factored in the cost of stamp duty?
Stamp duty? Why would we have to pay that? I am only adding my wife to the mortgage? Yo've got me worried now.0 -
Stamp duty? You've got me all worried now. I'm only adding my wife on to the mortgage.You havent been declined because you own 5 BTLs. You have been declined because you do not fit the affordability....you say that yourself in the post. So I am confused!
With regards to the ToE - Have you factored in the cost of stamp duty?
Based on our salaries we could have borrowed £60K+. I am thinking it is the BTL's that have caused us to be declined.0 -
Nationwide appear to have a stricter lending criteria than others you may be ok elsewhere, you may well have to pay stamp duty (a tax on documents)."An arrogant and self-righteous Guardian reading tvv@t".
!!!!!! is all that about?0 -
You are chaning ownership of the property. This means stamp duty will be payable on the transaction. You wont be able to add your wife to the mortgage without the same change being reflected in the house deeds (ownership of the property).0
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bargainbarmy wrote: »Sell a house? Where have you been the last 5 months? In case you didn't fully understand my thread i had tried to sell the property I bought but couldn't. ......and why is it wierd to want to have money in your bank account? It is very difficult to plan or deal with emergency expenditure if you have no savings at all. I am just basically just trying to release some of the money that I have put into the latest property.
Lower the price then. It's not hard. You can't be that desperate otherwise you would have done what all other desperate people have done, lowered the price until it sold.0
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