Will We Get our Mortgage Approved?

tara-m_2

Hi All

Wonder if you can help.

My partner and I both own properties, mine has a mortgage of 165K and his 90K. We have found a house that we want to buy and are looking to take a 85% mortgage which will be 211K. My partner is already letting his property at a profit of £350 per mth and we plan to rent mine which will also just cover the mortgage.

Our combined income is 80K plus 35K in bonuses which our mortgage advisor has said the banks will count half of.

Our MA assured us we would get a mortgage whatever even though we have two other properties, yet today we haven't passed the Nationwide credit check which surprises me as we have no adverse credit.

I am now understandably concerned as the MA has now applied to Accord for a mortgage but I am unsure as to whether we are wasting our time.

We may have the option of putting down a further 5% but I just wanted to see what others think and whether you think our MA is being realistic in this current market. There is no doubt we can comfortably afford it but the banks seem to be very tight at the moment.

Any thoughts?

GMS

Has your broker spoken to somebody at Accord before submitting a Decision in Principle? The last thing you need is a large number of searches on your credit file.

As long as the 2 mortgages you have at present are self financing with the rent then that alone should not cause too many issues.

Have you had sight if your credit reports? If not you should get them and check there is nothing on there that shouldn't be.

There can be many reasons for failing a credit check. Could be as simple as not giving a landline number.

Your case sounds like it should be doable. Needs to be presented correctly to the lender to ensure there is no doubt as to the current mortgages being financed by rental. Further doen the line you may need a consent to let letter from your lender if you are keeping the current mortgage, or a Buy to Let offer to confirm it.

tara-m_2

Thanks so much for the response.

Our MA has told me that the figures match when he puts them into their system- I don't think he has actually spoken to Accord.

I am also worried about too many checks being done, the MA says there is no adverse credit (I am assuming he has had sight of the report?)

It's interesting as we don't have a landline and I actually wonder whether it hasn't gone through because my partner is self employed and has very little credit against his name.

Accord have this afternoon referred the credit check which the MA says is pretty normal...just hoping it will go through tomorrow!

GMS

Did he speak to Nationwide to see why declined?

If your adviser is sure there is no adverse credit they must have seen the report. Ask them for a copy of it.

Who are your mortgages with at present? Have you considered approaching them?

Thrugelmir

From a lenders perspective they are looking at the following

• £466k of mortgage debt.
• One applicant self employed.
• Nearly 30% of income in the form of non guaranteed bonuses.
• A property which rented will barely cover the cost of a mortgage

So yes you can afford the 3 properties at current interest rates. However situations change rapidly.

How much equity do you have in your existing properties?