Where to try next?

jonoah

Hi we are hoping to move to a bigger house.

My partner and I have seperate mortgages. I have permission from the lender to let my house and the rent I recieve more than pays (£250 left over) the mortgage (which is interest free so we can pay more off the house we live in, rather then paying extra out in tax.) We plan to sell his house and buy a house together keeping mine.

We spoke to our mortgage lender and they agreed in principle to this and told us how much they would be willing to lend. We have found a house (for quite a bit under what they had suggested.) and have a buyer for ours. Everyones solicitors have been instructed to act and now our lender are saying policy has changed in the last few months and they are not likely to lend because of the second house. They may if we pay £5000 off it (not sure why) and we are waiting to hear back but it seems unlikely that the decision will be in our favour.

We are unsure where to turn next, should we try a broker? has policy changed everywhere so we are unlikely to find a lender? Should we cut out losses (so far £500) and not move, letting the other two couples down who have probably also paid out money. We really don't know where to turn. I don't know if its relevent but we have a 25% deposit for the house we planned to buy. We should have also been left with £5000 after fees etc (which possibly now would have to go off the second mortgage rather then kept as savings fo the new house.)

Thank you for any advice you can give us

Crashandburn

I'd speak to a broker.

Reading through that, I'm struggling to think which lender is having issues with the let to buy.

Sounds like incomes are good as you have bought for less than they agreed too, and there is a surplus on the rental over your let property.

At 75% loan to value, many new lenders would want that sort of business

Good luck

Dave_Ham

Not sure what policy they are referring to, this sounds on the face of it to be ok.

Is your lender Santander?

With consent to let, many lenders potentially will disregard this commitment so credit score, income and employment aside this should be achievable.

Get a decent, recommended broker and I suspect they can keep all this together for you.

Good luck

Thrugelmir

Lending policy has changed considerably since 2007 and will continue to do so for the foreseeable future. As lenders progressively tighten the screw. In the main this is due to an ever diminishing pool of lenders and available credit. Resulting in remaining lenders raising their criteria for lending.

Crashandburn

Thrugelmir wrote: »

Lending policy has changed considerably since 2007 and will continue to do so for the foreseeable future. As lenders progressively tighten the screw. In the main this is due to an ever diminishing pool of lenders and available credit. Resulting in remaining lenders raising their criteria for lending.

I'd say I'm seeing the opposite. Positive signs in the last few months with lenders changing policies seeking new business ie Skipton and Aldermore doing Let to Buys etc

I agree some are closing the doors on certain areas but this is only due to over exposure in that niche market

jonoah

Thanks we'll look into brokers tomorrow.

We are with Santander how did you know? They agreed in principle in September so not very long ago, we are very dissapointed. It's good to know there maybe hope

Thank you.

Dave_Ham

As it is the type of random policy that Santander would make up and not really be able to explain properly.

I genuinely believe that a half decent broker will make this problem disappear.

All the best