Baffling decision from Clydesdale Bank - any ideas on appealing?

swanseaboy

Thrugelmir wrote: »

What income rule? BTL's are not normally governed by income rules per se.

That's what we thought, and what the CB website says. However, it seems that the underwriter has taken a different decision, possibly because they interpreted our house as a second home for some bizarre reason, rather than BTL. Still, hopefully everything is now resolved

Zoology_Dragon

swanseaboy wrote: »

Not at all - we were remortgaging our existing house as a BTL, and buying a new residential property. However, this is dependent on the BTL, hence the risk to school places etc.

It reads to me as if you're buying a BTL property with tenants already in place, is that not the case? It is a bit confusing, if you're actually buying a residential property then remortgaging your current property that could explain why the underwriter wasn't convinced.

wolfplayer

Thrugelmir wrote: »

What income rule? BTL's are not normally governed by income rules per se.

Income rules are in force for BTL with some major lenders, and expect more.

RBS brands bring in 4.99 LTI cap on BTL mortgages

From Monday 14 July, RBS, NatWest and NatWest Intermediary Solutions will introduce a 4.99 times loan-to-income cap per application for all buy-to-let business.

The banks say they place a strong focus on affordability and measures to safeguard their customers and this change of policy is being introduced to create greater consistency between buy-to-let and residential lending policy.

Maximum loan-to-value for buy-to-let mortgages remains at 75 per cent as does the maximum loan size of £500,000.

http://www.mortgagefinancegazette.com/buy-to-let/rbs-brands-bring-in-4-99-lti-cap-on-btl-mortgages/

and http://www.mortgagestrategy.co.uk/news-and-features/sectors/buy-to-let/buy-to-let-news/brokers-slam-natwest-kneejerk-reaction-over-landlords-lti-cap/2012257.article

I realise many property investors were excited about MMR, and thinking they lenders would shower them with BTL no rules money to buy property.