Need a let to buy AND residential mortgage, been rejected by some providers

Rslarslarsla

Hiya,

Really complicated situation but I was hoping for some advice. We are letting out our current property so need a let to buy mortgage whilst at the same time buying another house so need a new residential mortgage. In nov, dec and jan I had some outstanding payments to an online shopping account which were a couple of hundred pounds due to a dispute which got sorted and the account is paid and settled as of March (last month). Every time else is paid on time, no loans, big savings account.

We got a broker and applied initially to Woolwich for both mortgages who declined based on the 'adverse arrears'. Our broker then tried Santander who declined also. He then tried natwest who have accepted and have given us a DIP. All seemed well until our dream house we lost out on came back to the market and we really want to jump ship. The problem is this house is more expensive than the current one we are purchasing. So we have been trying to get a mortgage for both again. As we want to borrow 65% of a £935k property and let to buy of 75% on a £375 property it is proving difficult to get this amount. Our broker tried platform home loans part of the co-op who seemed the only ones that may do these amounts but it was a decline (again due to adverse arrears). Is there anyone out there that know of any banks that would cover both mortgages? Our broker said there is nothing else we can do and that the only option is to stick with the current properties.

We would be willing to go for a slightly higher rate on the buy to let if it helps?

Any help what other brokers we can use that would deal with this? We have to the end of the week to try and find someone who would cover this!

Thanks!

Thrugelmir

Does your household income support £900k of borrowings?

To have arrears of a few hundred pounds on an online shopping account doesn't seem to fit your lifestyle.

ACG

Not enough info to say whether its possible but I suspect based on those LTVs it probably is. Its probably worth finding another broker and seeing if they think it can be done once they have the information needed.

Dave_Ham

Weird bunch of lender selections.

Were the missed payments on credit file showing 1 2 3 or 1 1 1?

What are your incomes?

Still fancy a solution although looks like existing broker has been guessing

amnblog

Your credit file is key here, whilst I have some ideas, your question cannot be answered without seeing it.

A poor credit file and let to buy mortgages are not good bedfellows.

It sounds like your current brokers strategy seems to be based on 'hit and hope'. Not the way to do it.

Rslarslarsla

To answer your questions, my husband earns £80k plus £8k bonus, me £42-£45k which includes £6k car allowance and £6-£8k commission, base £30k. We have enough savings aside to pay for stamp duty, fees etc.

The missed payments on file showed 1 1 2. My credit file and ratings are excellent. Noddle shows 4/5 and on experian I have a rating of 999 out of 999. No other missed payments anyway, everything else is up to date, no loans.

Rslarslarsla

By the way the latest decline was due to the adverse credit and not that we can't afford it if it helps.

Thrugelmir

Rslarslarsla wrote: »

To answer your questions, my husband earns £80k plus £8k bonus, me £42-£45k which includes £6k car allowance and £6-£8k commission, base £30k. We have enough savings aside to pay for stamp duty, fees etc.

Then I would say your salary let's you down. That's not enough to adequately fund £900k of debt. If lenders apply a responsible lending policy.

Dave_Ham

I will be bold and suggest a decent broker sorts this out on sensible terms.

It will need to be cleverly managed and things are tight, bit certainly achievable.

Best of luck

Rslarslarsla

Platform home loans said that it was because of the adverse credit and mentioned nothing about our salaries. Although we know that it is a stretch so did wonder. And not that it makes a huge difference but that was supposed to be £350k for the let to buy property and not £375k.

Would you think there are any providers that may do this? Is it possible to manipulate it so that the buy to let ltv is lower?

Dave_Ham

You are not going to be able to over think this transparently on a forum

You genuinely just need to go through all of the details with a different broker and confirm they can act quickly