Very confused with mortgage refusals - Help!

kingstreet

ACG wrote: »

You should also get a copy of your credit file just to be sure but its probably the fact your on the other mortgage thats causing problems.

Fair point ACG. I did kind of assume the OP's credit history was ok.

Faz

ACG wrote: »

You should also get a copy of your credit file just to be sure but its probably the fact your on the other mortgage thats causing problems.

Thanks - I checked my credit file online yesterday and it's all clear. This was actually my first concern, that something fraudulent had happened with my identity! Didn't think the second mortgage would be a big concern..

kingstreet wrote: »

The credit crunch didn't help. TBH a bigger income and bigger deposit would probably have relegated this to a minor issue. As it is, lenders now take affordability much more seriously. None of them want the FSA looking at them mouthing the words "irresponsible lending."

Makes sense! Will discuss further with a broker, and see if there's any chance I can up my deposit to 20%

Thrugelmir

Faz wrote: »

P.s. whatever happened to the days of people having multiple residential mortgages with ease?

Has never been that straightforward. A different scenario if the first property is let.

You need to remove yourself from the existing mortgage.

Faz

I'd like to add a fact to the above description - the property I currently co-own and have a mortgage on is actually let out, but has a residential mortgage not a BTL.

How does this change the dynamics of us securing another mortgage? Will a new lender want to see proof that the other property is let out (I can show them a tenancy agreement) or would they want to see proof of having a BTL mortgage / consent to let (which I can't provide)?

zzzLazyDaisy

Faz wrote: »

would they want to see proof of having a BTL mortgage / consent to let (which I can't provide)?

Well I am no expert, but I can't imagine that flagging up the fact that you are in breach of the T&C's on your current residential mortgage is going to help your application.

Conrad

It's all to do with how nthe case is presented, especially in regard to the existing mortgage. ACCORD WILL DECLINE THIS CASE - the broker you've spoken to does not seem experienced.

Be careful as some lenders such as N Rock will want consent to let the existing property if you input it as a residential mortgage.

Santander is likely the option you might want to try.

zzzLazyDaisy

Faz wrote: »

The house I have a joint mortgage on with a family member is lived in by that person, I don't pay the mortgage for it but helped them to get the mortgage (although they could probably have got it without my name on it).

I am confused (sorry, it doesn't take much).

If you have a joint residential mortgage with a family member, who lives in the house, how can it also be rented out?

GMS

zzzLazyDaisy wrote: »

I am confused (sorry, it doesn't take much).

If you have a joint residential mortgage with a family member, who lives in the house, how can it also be rented out?

Officially you can't rent out a property with a residential mortgage without consent to let. Many people do though as rates can be cheaper. Breach of terms and conditions and a dangerous game to play regarding insurance.

Thrugelmir

GMS wrote: »

Breach of terms and conditions and a dangerous game to play regarding insurance.

The lack of. As failing to disclose a material fact and signing a declaration fraudently voids the policy.

GMS

Thrugelmir wrote: »

The lack of. As failing to disclose a material fact and signing a declaration fraudently voids the policy.

This is what I was getting at. Although plenty take landlords insurance which they think covers it the lack of consent voids it as you say. The other side of it is the noted interest, i.e the mortgage company. If the insurer inform them of the property being subject to landlord insurance then the cover is blown so to speak.