Buy to let remortgage help please

Mandy4433

Hi all , I'm 35 divorcee,

I own a property , no mortgage , value 85k

It has long term tenants , I seek to remortgage 40k

I have another mortgage in joint names that's currently in process of being sold (ex husband)

I have credit car and loan value 16k , all be cleared on remortgage

Credit score is fair. according to experian

I have good income 28k and remorgage repayments quoted are minimal .

I live in boyfriends home, no fininacial link to myself

Yet I'm being turned down

Cant understand why wen minimal risk to lender ,

Any one got any advice ?

Dave_Ham

Without seeing credit reports from Experian and Equifax it is hard to say.

Considerations are that the buy to let credit scoring system is higher than residential ones. Which lenders have you tried and have you gone direct or through a broker?

Additionally has your ex done any damage to your "joint" credit relationship as this will potentially affect yours.

To only be "fair" with a mortgage is strange, have you extensive unsecured debt?

Mandy4433

I have 2 credit cards, 2 loans , and mortgage on credit file.

One loan and mortgage is being transferred to ex husband as we speak

No missed payments and anything ever , all green and satisfactory .

A few generic searches (utility's) and 3 address in 4 years

I used nationwide who accepted then lost application and declined afterwards, then a broker , who first lender declined , second was discussed with underwriter then declined on credit score.

It just seems ridiculous when I've never missed any payment and only want to borrow less the 50% of the value, the property has never been mortgage and I purchased in full 8 years ago

Dave_Ham

I do appreciate your common sense logic here, although that is not currently how it is working in buy to let world..

Was it TMW (Nationwide)? and any idea on others?

Mandy4433

I initially applied to nationwide online as have credit card and current acc with them , all was fine and got a lending certificate , I know that's not a garuntee.

But I selected remortgage and not buy to let remortgage, various calls later they refunded my fee and advised I start all over again , so instead I attended broker , the broker told me one decline , then a second lender "he could talk to a underwriter , not a pc " a few hours later also declined, I asked for other options and have given him a print out of credit report, this was last week , since that no contact.

So I am at the point go giving up and unsure were to go .

It may be worth noting the tenants of the property are my parents, we do have tenancy agreement although I do not actually receive any rent, I have agreed they can live in this property for life, so selling it is not a option sadly as I have no plans otherwise for the property

Dave_Ham

Subject to you declaring that information, it almost certainly rules it out.

There is no issue with some lenders, renting to family although the fact you are not receiving any rent is a huge issue.

In itself, it almost makes this situation untenable I am afraid..

Mandy4433

Thanks for your advice, I have never declared the rent situation , as far as lenders are aware rent was received as per agreement , my ex husband pays me the same sum as rent would be , so it also appearing in the bank , not that broker asked for statements , only provided p60, payslips and id

Mandy4433

Dave , this may make sense to you , i checked with experian , seems I have 2 credit history's linked , that shouldn't be , partners mother had same address name and similar dob.

Search on HER file for mortgage by Birmingham midshires

No search on my file now in maiden name , think they have muddled the details , she has poor credit score

Dave_Ham

Hi - it most certainly looks that way on the face of it. The system should prevent this as your information is unique and should not match similar, unless the broker made a right old boo boo.

Had you all used this broker previously and maybe that is the clerical error.

Either way you need to get on to Experian and Equifax and financially disassociate yourself with them all, unless the mortgage you are currently settling has them on it and will not be able to until this has concluded.

In a strange sort of way this is good news, as at least it puts some logic to things. Although, I cannot understand how you have had to find this out yourself, would have been in the brokers interest to have resolved this for you...

Mandy4433

To b honest the brokers didn't appear very interested, has informed me would forward info to the underwriter .

I'm considering a fresh application with correct details . via a new broker . This seems sensible solution to me but I'm no expert

I only changed my surname via deed pole in jan , thus matching it to my partners mothers , no place on my credit has been updated with my new surname . I think broker maybe didn't declare my previous surname on the application

Dave_Ham

Sorry I misunderstood I think, I thought it was your ex's Mother you clashed with name wise..

Heavy day, apologies..

Every detail needs to be keyed perfectly in order to create a match. If she has a Halifax relationship financially it may be why they picked her up...

Sub 60% LTV, BM was a good selection mind you..