BTL lending affecting new mortgage application

mrsbooster123

Hi there,

I am currently applying for a new residential mortgage and have today been told that my borrowing on my 3 BTL properties may mean the lender is unable to lend to us.

All 3 BTL's are rented and self-sufficient and two of these are with the lender we are trying to get a new residential mortgage with.

Has anybody experienced this before? I have always been told that providing they are self-servicing - BTL borrowing is discounted from any affordability/allowance.

Feeling stressed!

Thanks

GMS

What Loan to Value are you applying for?

Which lender?

kingstreet

mrsbooster123 wrote: »

I have always been told that providing they are self-servicing - BTL borrowing is discounted from any affordability/allowance

That depends on the lender from which you wish to borrow.

Some are easier on such situations, some aren't.

Please answer GMS's questions and tell us this is being dealt with by a broker...

Funny_old_game

You may consider then self financing, the lender may not. Happy days.

amnblog

There are so many snags in this type of arrangement when trying to raise new lending that you should be using a broker.

Contemptuous

AFAIK, some lenders restrict the number of properties or value of mortgage you can hold with them at any one time. Perhaps your limit has been reached with that particular lender.

mrsbooster123

Thanks for your replies. It was with Natwest for a 90% LTV residential deal. Our BTL's are all 75%.

I have contacted a broker today, hopefully he can help. Does anyone have any experience of Coventry in a similar scenario?

Thrugelmir

mrsbooster123 wrote: »

All 3 BTL's are rented and self-sufficient and two of these are with the lender we are trying to get a new residential mortgage with.

Unless the properties are unencumbered, i.e. debt free they are not self sufficient. As you are carrying the risk of debts to service and costs to pay should the tenants default or no rent is generated for any reason. Leveraging magnifies the reward and likewise magnifies the downside.