Cant get BTL Mortgage No Credit History

DannyType1

Hi I have be rejected from a BTL mortgage because i haven't got any previous mortgages. I have got a credit card through Nationwide with 3200 allowance on it. I have been using it and paying it off in full each months.

How many months before i will have some history to apply again.

Is there anything else i can do to help the process along.

How long is it before the banks send out data about credit card payments to Experian etc.

Any help will be gratefully received

Danny

Foxy-Stoat_3

BTL lenders normally want you to have a residential mortgage for your own home, are you renting?

ACG

It sounds like you have been declined because you are not a residential homeowner rather than a lack of credit.

Speak to a broker as there are a couple of lenders who may do this but not many and I dont think any are on the high street.

Verix

The few lenders that do allow first time buyers for BTL's will have minimum income requirements which you have to fit within. What kind of salary are you on?

DannyType1

Hi thanks so much for the posts. I havent got a residencial property. I have another BTL property which i bought in full worth 87000 but no mortgage history. I am a director of my own business and i put down on my previous application that my salary would be 24000 plus. I feel like i am stuck between a rock and a hard place. Got the desposit even offer to pay more than the 25% normally asked for.

Thanks

Danny

Thrugelmir

DannyType1 wrote: »

I feel like i am stuck between a rock and a hard place.

A home is equally a good investment. Alternatively top up your pension if you've funds earning you little return.

DannyType1

I havent got a pension i am afraid. Already got ISA's etc and i really wanted to get 3 - 5 BTL in my portfolio.

PBA

There is an article in today's Times money section on this exact situation. It mentioned the lenders who are able to help in this scenario, one is definitely Natwest, the other is Clydesdale I think.

DannyType1

Thanks for that got some new options to try. I just signed upto Equifax and it said i wasn't on the electoral role and gave me a fair credit score as apposed to excellent with Experian. Are there any other ones i need to check.

Thanks

Danny

Caprylate

Experian and Equifax are your two biggest but Noddle is free for life and seems just as good to me.

If you're an experienced landlord with a mortgage free rental property but are not an owner occupier (with or without a mortgage) you should have a few more options than a first time buyer wanting to become a first time landlord.

Get on the voters roll as that makes a big difference, if your plan is to have a few BTLs you could look at remortgaging the current BTL to serve two purposes, providing mortgage history and allowing you to raise the deposit on new BTL purchases.

DannyType1

Hi thanks for the reply. I have had a reply from Equifax and they said the electoral role will be updated early Jan. The remortgage option might be the way to go. How easy is it to get a remortgage against a property that you own in full for a BTL etc. Never done this so feel like a newbie.

Thanks

Danny