Remortgage appeal with Precise mortgages

aliarf

Can you help me please, I need some advice.

We applied for a Buy to let re-mortgage and looked to release some capital to reinvest this into another BTL. The re-mortgage application is with Precise mortgages, they declined our application on the following basis;

Following review of the application we are unable to proceed based on the following:

We have concerns over the applicants stability of income, and that they would not have sufficient income to support any rental voids.

We also have concerns over the intended use of the property. The applicants have no other buy to let mortgages and would not have sufficient income to cover a residential mortgage. The property is also similar size to where they are currently renting.

I work on £30k Salary and have a good credit history, no CCJ no Bankruptcies, I only have some debt outstanding. We also live with family in a mortgage free house, so our outgoing bills are virtually none.

I have appealed against the decision and shown that we have about £34k savings which would cover any rental voids.

Does anyone know if I stand a chance of having the decline decision approved?

Thrugelmir

Little possibility of overturning.

Where are you planning on living. If you convert your existing house to a BTL and add another.

aliarf

Thanks for ur reply and wise words.

We live at home with my dad in a mortgage free house. Our outgoing a are very minimal.

What do you think now?

amnblog

The Lender thinks you are trying to purchase a home for yourself through the back door.


They may be right, they may not - that does not matter as it is their call.


What is your broker's plan B?

csgohan4

Define 'Some' debt outstanding?


how much is the house??

densol_2

The lenders look out for people that apply for a BTL mortgage when they do not meet the affordability for a residential mortgage. As Amnblog says its getting a mortgage through the back door. In their reply Precise say you dont meet the affordability - hence their decline.

aliarf

To answer ur questions, my broker doesn't have a plan B, abit worried now thinking about it

The house is worth £470-£500k and we r looking to release as much as possible leaving 25% after the remortgage

Do u think I'll get approved based on my savings

csgohan4

aliarf wrote: »

To answer ur questions, my broker doesn't have a plan B, abit worried now thinking about it

The house is worth £470-£500k and we r looking to release as much as possible leaving 25% after the remortgage

Do u think I'll get approved based on my savings

Get a broker and you may have options. Applying yourself after one failed application is not wise


Still haven't answered question on debt you have?

amnblog

You need another broker and his/her 'plan B'

aliarf

I have about £37,000 debt outstanding. We have shown savings of £35k does this make a difference.

My brokers plan B is to either wait and work on the reasons of rejection to improve them or try another lender which I'm not keen on.

I'm soo nervous, really need this

aliarf

So, the mortgage company came back and refused my appeal, they replied the following. My broker said the case is now with the senior underwriter so hoping for a decision later today. Anyone have any feedback about senior underwriters and their experiences:

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We have reviewed the additional information, latest P60 and payslip however are unable to reinstate the application.

We still have concerns over the income. The 2016 P60 only shows £11,193 and the previous share information we cannot use as it is not stable income.

Sorry we are unable to assist further

---

My broker said the following:

So I took it up with my contact and I informed him that we already notified Precise on the fact you were on Sabbatical so obviously your income is going to be lower.

Also, they clearly didn’t read the appeal properly over the share information because that wasn’t being used as income.

My contact said he thinks the decision is ridiculous and has taken this to a senior underwriting manager.

Anyone got any feedback for me?