Mortgage for commercial property

pitterz

I am a childminder and have just been informed by my current mortgage lender that they won't lend us money anymore because it is now classed as a commercial property because of my job???? This was not the case when they leant us money 5 years ago!!!!! I don't understand it. We live in our house, it's not a shop?! Anyway, any advice on a new lender who would lend to us?

kingstreet

Is there any chance you could expand a little on your situation?

Where do you look after kids? Is your home a split residence/nursery?

pitterz

I am a childminder who look after 4 children part time and they use the downstairs of my house like members of the family. It isn't a nursery....does that help?

holly_hobby

The crux of the issue here is that you are conducting a business from your home, which will be behind their bombshell, as technically you will be in breach of your resi mge t&cs.

Unfortunately, whilst most inconveinent, the lender can decline any application that yrs ago they may have happily accepted - criteria and lending mandates do change and evolve over yrs, be that from actuarial data, a revised or more conservative business model, or just becuase - if they have declined your FA, then sourcing an alternative provider will be reqd.

A broker may be the way to go if you want to move to an alternative provider, but you may be looking at semi-commerical rates given the combined business use of the property.

Hope this helps

Holly

kingstreet

If you could expand a little by telling us your situation, you may get more useful guidance.

Tell us about the property and your plans for it. Tell us about the current mortgage and what you want from your current lender. Tell us about the make-up of your income(s) credit history and credit commitments

Crashandburn

pitterz wrote: »

I am a childminder and have just been informed by my current mortgage lender that they won't lend us money anymore because it is now classed as a commercial property because of my job????

I would go back to your lender and get this clarified. Using that policy, they would class all home workers as commercial lending.

Have they sent a surveyor round? It's usually down to his comments and if he has classed it as a commercial property, then I would question this. From the sounds of it, kids toys and a stairgate don't constitute commercial premises!