Buy To Let Versus Residential

gilly33

I've just had my application turned down by Santander for a residential mortgage for a number of reasons they said first they were not convinced I was going to live in the 1 bed flat and that I would use it as a buy to let because of my existing buy to let portfolio and because I have kids so a 1 bed would be too small and secondly I've gone into my overdraft a couple of times which makes them feel I'm feeling financial pressure. However I'm pretty sure it's because I emailed them my full report which they requested. I had 3 hard searches from them in the space of two weeks which knocked off 70 points off my report. They said they would remove the searches on the basis that I send them my report so they could see the searches. I've got quite a few unrecorded searches and a mortgage quotation. I've now have to find another lender but my concerns are the searches and is residential mortgages more difficult to get than a buy to let? I have buy to let mortgages and I've never had to go through all the questions flying back and forward from underwriters.

somethingcorporate

Are you going to live there? The questions given you have a family etc appear legitimate queries.

The searches have knocked no points of your score because the only people that your "score" matters to are the people you pay to see such a "score".

Having searches on your file may make you less attractive to a lender but what impact it has on your application will vary lender to lender.

gilly33

Well the buyer's house fell through which means she's out looking for another so there's no immediate rush, however I need to look at remortgaging one of my buy to lets because I've now moved onto the variable rate but I'm worried I'll get another knock back and the lender will see I've been turned down for a mortgage recently. I'm also concerned at re-applying for a residential again.

Simon_gloster

Are you going to live there?

gilly33

Was looking at using it for the summer because of the garden but I dont think I'm going to have it for the summer now so no. Originally I was going for a buy to let but then I was offered the residential by the agents broker and got accepted but then asked to change it for a buy to let, because I knew I wouldn't live there permanently and I would rent it in the winter. But then Santander was going to do another full search and I didn't want them to keep searching so I said to keep it to residential which was probably my biggest mistake.

Simon_gloster

All I can say is be careful. Big brother exists and lenders plus 3rd parties talk......with your consent even if you don't proceed.

gilly33

Well I've not used this broker before but now I've upset my independent because I went through someone else who couldn't pull it off. I really don't know what to do.

somethingcorporate

If you are not going to live there then a B2L mortgage is likely more suitable.

Go and find a new (good) broker to stop you from wasting any more searches.

gilly33

thats the hardest part is finding a good one

somethingcorporate

Yes, it can be. The best way is try: https://www.unbiased.co.uk or ask around your friends and family for recommendations.