BTL mortgage been declined

melj16

Ok so today I've applied for a BTL mortgage with Birmingham Midshires through London and Country Brokers.
£40k purchase price, £10k deposit (75% LTV)

I've been declined on credit score alone!

Strange....four months ago I got my first residential mortgage, my situation has not changed at all.
I have checked my credit report with Experian (who BM have used to credit score me today). My report is only showing info for my new address and my previous one but not my previous previous.

Obviously BM will have looked at my full report as opposed to what I have viewed this evening.

I have a copy of my statutory report from May last year which shows the info which I am not able to see this evening, I have 1,2,3,4 showing for a contract phone from Apr, May, June, July 2011. I have two late payments showing one from May 2012, and one from May 2010 for a credit card. I am not currently on electoral roll at current address, as only been here for four months, but have filled the forms in so should show within the next couple of weeks, but MA said this shouldnt be the issue.

Having done my residential mortgage only four months ago, my mortgage adviser is baffled and thinks something must have drastically changed on my credit report.....but from what I see, it hasnt!

She has asked me to send a copy of my report over so she can look at it to see whether it is worth appealing.

She seems to think that BM are lenient and its not like i'm applying for 90%.

Frustrating.....I will know more tomorrow when my experian report refreshes and shows the info which is at the moment missing. I am hoping the idiots who applied for credit in my name when I left a property two years ago, didnt manage for one to slip through the net and something from that has now hit my credit file......who knows!

SammyFace

I took out a BTL with BM earlier this year (£112k on a valuation of £180k) - there had been 12 months since my previous mortgage application/purchase. My Broker advised that BM wants 6 months minimum between mortgages/properties. Not sure if this is fact but it may hold some water.

ethank

Are you on the voters roll at your new property - this can cause you to have a lower score.

Is any of your addresses been a flat, and not keyed the address correctly. If it does match the Royal Mail address it can cause an issue.

melj16

SammyFace wrote: »

I took out a BTL with BM earlier this year (£112k on a valuation of £180k) - there had been 12 months since my previous mortgage application/purchase. My Broker advised that BM wants 6 months minimum between mortgages/properties. Not sure if this is fact but it may hold some water.

I will ask MA about this on Monday, thanks.

melj16

ethank wrote: »

Are you on the voters roll at your new property - this can cause you to have a lower score.

Is any of your addresses been a flat, and not keyed the address correctly. If it does match the Royal Mail address it can cause an issue.

I'm not on the voters roll at the moment as its canvass time so its takes longer to show, I filled the forms in October

I've not lived at an address no. Just cant understand why my 'score' is so low that I cant get a mortgage with a lender who is supposedly not strict, when i've just got a mortgage no problem.

I'm hoping it will be more clear in time. I'm not getting my hopes up for an appeal

Thrugelmir

The recent residential mortgage may well be an issue.

melj16

Really? I asked for advice beforehand and people (and my mortgage broker) said it shouldn't be an issue. Do you think it's worth appealing and asking a human to look at it again with a copy of my experian report instead of just computer says no. (That's if they even agree to look at it)

Thrugelmir

In these times of more cautious lending. May well be this lenders board policy under the remit of "lending responsibility".

Wh05apk

Credit score looks at a number of factors, not being on VR (for whatever reason) is a big negative, missed payments, and certainly up to a "4" will be major, I am not aware of BM requiring 6 months, but having just completed on a resi mortgage will likely also impact.


BM are very good at BTL, but sometimes can decline a lot due to credit score, suggest your broker looks at other lenders?