Mortgage application declined but lender will not give reason???

clarya2b

I applied for a BUY TO LET mortgage with The Mortgage Works. While the offer was accepted in principle , the offer was rejected by someone at the head office is all they will tell me as their small print states they do not have to disclose their reason. My credit scoring is good and a clean credit report and fail to understand why but they refuse to give me a reason.

[Deleted User]

They don't have to give you a reason, as frustrating as that is.

dimbo61

Do you already own your own home ?
Do the figures add up ! Rent is 125% of mortgage payment at 6%
IE rent £500 a month mortgage £400 if Interest rate was 6%
Do you earn at least £25,000 a year.
Deposit 25% or more ?
First time landlord or already own several properties ?
Distance from rental property to home address.
Business Plan. Knowledge of local market
What do other rental properties rent for in the area
Market conditions

Wh05apk

I had this recently with TMW, it passed the AIP ok, but the u/w decided they did not like the overall feel of the case, in terms of low overall income, high commitments etc, exceeding o/d, and online gambling.

betmunch

With TMW it could be anything, we've had cases where they have just made stuff up the dont like the sound of and decided our clients might do it.

We then prove the client cant or wont do what they are worried about and appeal, nope still rejected!

Leon_W

Had a TMW decline yesterday on a BTL. My client has clean credit history, but the reason for refusal was that she acts as a guarantor on a loan for her son who a couple of years ago missed a few credit card payments. This appeared on her credit file because of the financial association.


Talk about being punished for somebody else's misdemeanours. All seemed very tenuous and just a reason to turn down really.

Thrugelmir

Leon_W wrote: »

Talk about being punished for somebody else's misdemeanours. All seemed very tenuous and just a reason to turn down really.

An open ended liability in the form of a guarantee is hardly tenuous. Totally the reverse it's a stone wall risk.

Leon_W

It was a loan for £1000.


She earns 40X that. Sorry, probably should have mentioned that. A pathetic excuse for a decline IMHO.

clarya2b

I have a good credit rating and no markers on my credit history. The nature of my business is relative to business needs. Have a few properties on buy to let and this was an addition in my local area. My bank has agreed to fund my purchase but would still like to find out why TMW declined. The information commissioner would be my next hope.

Thrugelmir

clarya2b wrote: »

I have a good credit rating and no markers on my credit history. The nature of my business is relative to business needs. Have a few properties on buy to let and this was an addition in my local area. My bank has agreed to fund my purchase but would still like to find out why TMW declined. The information commissioner would be my next hope.

A financial institution is highly likely to take a totally different view of your financial position than you do. As you are operating a business then your personal credit rating is only part of the underwriting process. If your business is highly leveraged then this will raise concerns.