Declined BTL Mortgage Works

splodge2001

In a pickle!

We have just applied for a loan with the Mortgage Works as I have been a director of a LTD co for only 1 year.

They refused on the basis that we had incurred unpaid direct debit on the current account. This is because on a couple of occasions I forgot to transfer money from the rent account to our current account. The direct debit amounts were paid the very next day.

We don't have any other options and want to appeal. We have a broker. How do we do this?

Thanks

ACG

Im sure there are other options. By all means bang an appeal in but I would be looking for a new broker to find Plan B if your current broker is saying that is your only option.

In the meantime get your credit reports to check fi the late payments are on there or if its just the bank statements that caused the issue.

splodge2001

Thanks it's only the bank statements - our credit score is excellent (999 - experian). How do you appeal? Do all brokers do it? Can I speak directly to the mortgage works?

ACG

Forget the score, go through the report and have a look if the late payments are showing (typically amber instead of green or maybe red).

Have your broker do the appeal.

splodge2001

definitely no missed payments.

ACG

Awesome. There will be other lenders for if then.

splodge2001

There really aren't! Only TMW and BM solutions are non status. We only have 1yr company accounts. We're already with BM and their follow on "product transfer" has a much higher interest rate than the Mortgage Works. :-(

ACG

Who says?
Dont take this the wrong way, but I do this for a living. One broker saying something can not be done means nothing.

kingstreet

Non-status?

I don't think so. Both have complex affordability calculations set into their application systems. They may not ask for a minimum personal income, but they do test an individual's ability to meet their commitments AND cover the mortgage payments in the event of a void period.

Both can also request evidence of income. We have a BTL remortgage and BTL purchase under way for a single client and they have been asked for evidence of income and in the case of the purchase, evidence of deposit.

How did your broker fail to notice the unpaids/unauthorised borrowing charges on your bank statements before the application was submitted?

splodge2001

Yes - I'm beginning to wonder why this wasn't picked up by the broker. I had no idea that it would make an impact.

I can't find anyone who will take someone with 1 yr accounts. Previous to us having a company our income was less than <£20k each and most lenders want £25k minimum for at least 1 applicant.

If you can tell me anyone else who will accept us without minimum income requirements/1yrs accounts then I'll gladly listen.

The rate with TMW was 2.19% @ 60% LTV. The BM solutions one is 3.09% - hence why I really want to get TMW one

ACG

Already said, speak to your broker or a new one. I can think of 3 off the top of my head. 2 of which are broker only.