How is anyone getting a mortgage please?

My plan was to borrow money on my existing property (getting a new let to buy mortgage on that) to put down as a deposit on a new residential mortgage. My FA initially advised that the best offer was with First Direct so I duly applied and all seemed to be going well. Then after 10 days, they advised me that they didn't think I could cope with 2 mortgages running along side by side so they were declining me.
I applied to Smile with whom I have been a current account customer for over 10 years. Two one hour long phone calls went well, I sent in my documents as requested. Just had a phone call, a week after my initial application phone call, and have been turned down by them too. They dont allow a person to borrow on an existing mortgage. I pleaded with him that my current account history shows I am sensible with money and I know I can cope with 2 mortgages. To no avail. It's another no. I am now worried my vendors will think we have taken too long; can I afford to have another week of waiting whilst I apply for a third time? I am also worried that my credit rating, which has been excellent, will be adversely affected by 2 declines in 2 weeks.
My FA advises he can find me someone who will let me borrow on this criteria but I just dont understand why the 'apply yourself mortgage lenders' suggest all these great deals but then don't let anyone actually successfully get anything. What is the secret?
Sorry for the rant. My 'furious' typing is preventing me from crying so that's good. :mad:
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  • alleycat`
    alleycat` Posts: 1,901
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    I struggled to read this a little bit.

    My understanding is your are looking to convert your existing property (and mortgage) to a buy to let?

    You want to draw down against the existing property (you are going to Let out?) to purchase a new property for you to live in?

    Is that correct?

    Lots of questions spring forth about LTV's, deposits, Credit ratings any previous issues in the last x years and the sort.

    Also, and this might sound a bit off, why are you asking people on a forum if you have a FA (whom i assume you are paying)?
    Your FA should really be doing the leg work for you (and applying willy nilly for mortgages will not help your cause).

    One of the IFA's on here will probably give you a better breakdown of what you'd need to supply to get a reasonable answer.
  • Thanks for your reply Alley Cat. I was just wanting a rant really. Not to get serious advice.
    The plan was to borrow on the equity in my existing flat (mortgage for that has been a doddle. Borrowing 60% LTV) and rent my flat out whilst getting a new residential mortgage (75% LTV) for a new home. Does that explain it better?
    I just think these banks suggest they have great deals but dont really want to lend to anyone. Tempted to leave Smile to punish them for turning me down but it does quite suit me. That's annoying...
  • Conrad
    Conrad Posts: 33,137
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    My FA advises he can find me someone who will let me borrow on this criteria but I just dont understand why the 'apply yourself mortgage lenders' suggest all these great deals but then don't let anyone actually successfully get anything. What is the secret?
    Sorry for the rant. My 'furious' typing is preventing me from crying so that's good. :mad:


    There's quite a long complex answer to that, but it essentially boils down to FSA regulation which impells a lender to lend responsibly.

    An FA is not usualy an adept mortgage broker. I'm very surprised who told you to go with First Direct, that was always going to be a fail.

    This has to be appraoched in a very specific order, but is doable. I know a good broker in Herts if it helps!
  • kingstreet
    kingstreet Posts: 38,690
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    Quite frankly, you've been trying to push square pegs into round holes. Retail-type banks just don't want buy to let business. Stick to the intermediary type lenders and you'll be fine.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • betmunch
    betmunch Posts: 3,126 Forumite
    What I dont understand is why your FA sent you to First Direct with anything but a purely "Vanilla" case. I would have told you about the deal, but advised against it due to the LTB situation. Direct lenders currently are just no good at anything that isnt basic and straight forward.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • jackomdj
    jackomdj Posts: 3,073
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    Lloydstsb did exactly what you are looking to do for us.

    Ported & upped old mortgage over to new place. Took out BTL mortgage on old place. Possibly worth going to see them direct to see if it's possible.

    As someone else said don't apply in too many places as this can effect your credit rating.
  • The_J
    The_J Posts: 1,250 Forumite
    betmunch wrote: »
    What I dont understand is why your FA sent you to First Direct with anything but a purely "Vanilla" case. I would have told you about the deal, but advised against it due to the LTB situation. Direct lenders currently are just no good at anything that isnt basic and straight forward.

    Exactly what I thought. My thinking is that this person thinks they are entitled to do what they like and apply for the best deal, the FA cannot deal with FD so sends them away to apply... bang bang it all falls down and the toys come out the pram.

    Poor FA for not sticking to his guns and telling this spoilt brat the truth. Maybe he didn't think it was worth the effort to discuss it.

    OP: get some proper advice, this is perfectly possible just not on the best deals.
    The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    My plan was to borrow money on my existing property to put down as a deposit on a new residential mortgage.

    That's where you plan immediately falls down. Lenders will expect you to inject your own capital in as the deposit on the new property.
  • gwernybwch
    gwernybwch Posts: 210
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    The_J wrote: »
    Exactly what I thought. My thinking is that this person thinks they are entitled to do what they like and apply for the best deal, the FA cannot deal with FD so sends them away to apply... bang bang it all falls down and the toys come out the pram.

    Poor FA for not sticking to his guns and telling this spoilt brat the truth. Maybe he didn't think it was worth the effort to discuss it.

    OP: get some proper advice, this is perfectly possible just not on the best deals.

    A bit harsh. The OP afterall did seek professional advice. I think that I would be a bit miffed if I paid someone to give me what turns out to be pretty poor advice.

    For someone that is currently doing something similar to what the IP is trying to do, some of the responses that I've received from potential lenders borderlines on contempt.

    OP: I suggest that you get some advice from a whole of the market mortgage adviser, preferrably with BTL knowledge. And be patient, the days when banks treated people as customers finished circa. 2008......
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    gwernybwch wrote: »
    For someone that is currently doing something similar to what the IP is trying to do, some of the responses that I've received from potential lenders borderlines on contempt.

    On that point I disagree. Its borrowers that require the education. Banks are acting in a proper manner. Lending sensibly.

    We've moved away from the lax lending of the boom years.
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