Mortgage denied due to buy-to-let

scrimshank

Hello,

I'm currently trying to apply for a mortgage that should be within my affordability but am repeatedly denied an application in principle.

I have two buy to let properties that give a net monthly income of £170 after costs but these seem to count against me (I think, as I can't see why else my applications are being denied).

I am in the process of applying through a broker now (although I would prefer to shop and apply independently).

In the meantime does anyone have any experience with this type of situation?

Thanks,

Chris

GMS

Why do you want to bypass a broker? You have tried yourself without success.

What are you looking to do? What Loan to Value?

Thrugelmir

scrimshank wrote: »

Hello,

I'm currently trying to apply for a mortgage that should be within my affordability

Your definition may differ to that of lenders. Borrowers tend to look optimistically at their finances whereas lenders will naturally be cautious.

BTL income won't be taken into account.

£170 doesn't sound very much. Given that could very quickly be wiped out with a period of voids or a delinquent tenant. Also longer term there'll be major repair/renovation costs to build reserves for.

amnblog

Lenders need the rent on buy to let properties in the background to exceed the mortgage payment (sometimes based on a set nominal mortgage rate) by 25%.


This sounds like your problem.


You may 'like to shop independently' but this is not a 'shopping' exercise and you have done the right thing by consulting a broker.