WHAT do we have to do?

lisanmark

PLEASE - Can anyone help us? We are currently applying for an additional mortgage on a property valued at £184,000.00
We are changing our current mortgage to a buy to let one, where our loan amount is £244.00 per month and the rentable value is between £550 and £575 per month.
My wife earns over £33,000 pa and I, although self employed have accounts showing last years profits as being over £46,000 with a supplied forecast from my accountant, showing similar this year. I have been self employed for 18 months and before that was a director of a limited company, and have a P60 for that previous year, as well as a set of accounts for that period. So there is a continuity. I receive a minimum consultancy fee of £2000 per month from a compnay and have provided a letter of reference from said firm.
We have a loan of £287 per month, but apart from that, nothing else. No ccj's, no overdrawings, no missed payemnts, thats it! Oh and we have almost £40,000.00 cash at hand in the bank! So we can afford a 15% deposit comfortably. We have had agreements in principle, yet we seem to be struggling and we really dont know why.
We are using a broker at the moment, but can anyone else help? Why oh why are we paying the price for the banks incompertences? Its NOT fair. We are a very good customer, with a good credit score etc, but they seem to want blood.....HELP! Anyone??
Lisa and Mark

Cannon_Fodder

It is not clear what your problem is. What are you trying to do? Why change to BTL for additional funds - are you seeking to fund another purchase or just to release funds?

BTL often needs 20%-25% deposit. Do you mean let-to-buy? LTB uses a rental value approach, I believe, leaving the next house to be an "ordinary" mortgage/deposit approach.

Self-employed in a property related industry?

Do you get AIPs ok, but are then turned down when "going the whole hog", seeking the mortgage offer?

That's not uncommon. Various things turn up that might not be spotted at AIP stage.

You need to ask what the problem is...

Is it a whole of market broker? What do they say the problem(s) are?

Mrs_Bumble

What exactly is the problem?

Is it just the fact that you are having produce a lot of documentation?

I take it you are looking to switch existing mortgage to buy to let and borrow further funds to purchase a new property.

Your wife is employed but you yourself became self employed 18 months ago and as such have just one years accounts? Now whilst I appreciate that your have good credit history etc what you are looking to do is in depth and does present a risk as you will be responsible for 2 mortgages, the buy to let market it is feeling it at present and lenders are jittery, also you have become relatively newly self employed and so as far as the lender is concerned relatively unproven. So I would expect a shopping list of requirements as long as your arm to be honest! Sorry