Feeble Reason for Mortgage decline.

Stuey73

I wonder if anyone has has a similar experience to myself.

I attempted to apply for a buy to let mortgage with Clydesdale Bank via a broker in recent weeks.

I am attempting to purchase a new build apartment in Leigh on Sea in Essex which has a strong future with good schools and multiple big house builders lining up with new schemes close to where I attempting to buy. The building itself is finished to a high quality inside and out and has extremely good rental opportunity.

Despite having a deposit of 48%, today i was turned down by lenders valuation department because the the building is next door to a second hand car sales garage. Sorry I do not understand this reason. There are many amenities around, shops, restaurants, petrol stations etc, yet I am struggling to understand this reasoning that this type of business is a problem

I jumped through all their hoops even had to supply my own credit report to the lender via the mortgage broker.

My broker who is local to where I am attempting to buy is at a complete loss as to the reason why this should be turned down.

I would like to purchase this property, but I think this decline has / will damage my credit rating despite me as the individual not being at fault and passing all their tests

Has this already damaged my credit rating, making it unlikely to obtain a mortgage from another lender.

Should I indeed try and pursue this property through a second lender (my broker thinks I will be difficult) because I believe it to be great opportunity and too good to miss.

Sorry for war and peace length of my tale. Any advice from the MSE world would be most welcome.

Hope for a response

Thanks in advance

Stuey73

ThePants999

No significant effect on your credit file. Try elsewhere, though you might also want to try a different broker.

ACG

Your broker is at a loss is the biggest surprise to me.
Last year I had a client who wanted to buy a home next door to a mechanics garage. I told them before applying that there was a possibility it would be declined because of that...It was.

A car forcourt has people visiting all day long, vehicles being started, stopped, revved all day - long periods of noise and air pollution.

Not many lenders will lend on properties next to or opposite garages, mechanics, petrol stations, pubs, take aways and off licenses and they will all be subject to valuation. Some lenders will allow you to send a link from google street maps to get an initial opinion before applying.

But your broker should really have set your expectations with this before applying in my opinion.

One credit check is unlikely to be a deal breaker on your credit report.

hazyjo

I'm buying (hopefully soon) in Leigh-on-Sea too


If it's a literally brand new, chances are you're overpaying anyway. Definitely have a look at what else your money gets you.


It may be that the garage will become yet more flats which may devalue yours, or they may think there's risk of it becoming a petrol garage (was it ever one?), or even a drive-thru dry cleaners. It's partly the unknown they don't like. The fact there's a garage next door prob means it's on or near a main road too which may also make a difference.


Jx

G_M

Many (not all) lenders will refuse to lend on properties above, next to, or near certain catagories of commercial entreprises.

It used to be primarily flats above fast-food outlets/pubs but the list is extending as lenders become more cautious.

They worry that if they have to repossess (ie you default on the repayments) they will have difficulty selling and will be stuck with the property.

Either find another property, or another lender.

martinsurrey

G_M wrote: »

They worry that if they have to repossess (ie you default on the repayments) they will have difficulty selling and will be stuck with the property.

Funny thing is that one of the main reasons they are difficult to sell is you cant get a mortgage!

chicken/egg