Mortgage application refused due to suspicion I’m buying-to-let

Tripler

I’m looking to buy a house and relocate to Cornwall from the midlands.
I’m self employed and work from home (with a good credit record and cash to put in a 10% deposit) although I travel a lot around the UK.
My mortgage advisor says he is struggling to find me a mortgage because lenders suspect that what I’m really doing is buying a second home with a view to renting it out for holidays, hence they are saying I should be applying for a buy-to-let mortgage.
This is definitely not the case; it will be my only home.

Has anyone heard of this and/or have any advice?

csgohan4

Tripler wrote: »

I’m looking to buy a house and relocate to Cornwall from the midlands.
I’m self employed and work from home (with a good credit record and cash to put in a 10% deposit) although I travel a lot around the UK.
My mortgage advisor says he is struggling to find me a mortgage because lenders suspect that what I’m really doing is buying a second home with a view to renting it out for holidays, hence they are saying I should be applying for a buy-to-let mortgage.
This is definitely not the case; it will be my only home.

Has anyone heard of this and/or have any advice?

You need to prove potentially a new job in the area as your self employed do you have contracts or work lined up??


You cant blame the lenders as they have seen it all before and are applying due diligence

ACG

I suppose it depends on your job. If you are a cleaner where you physically have to be at the premises to do your job, then it is unrealistic to expect you can move your business from the midlands to cornwall without a drop in income.

If you build websites then I would be expecting to get it through without a problem.

What do you do?
Who have you applied to?
Can you write a letter to lender explaining that you are buying the property with the intention of living in it as you are able to work from anywhere in the UK without it affecting your work and that you understand the implications of letting the property out would be a breach of your Mortgage contract with one of the outcomes being the loan getting recalled and liable for legal costs?

Nick_C

Travelling a lot around the UK is not going to be easy if you move to Cornwall!

seashore22

Nick_C wrote: »

Travelling a lot around the UK is not going to be easy if you move to Cornwall!

One of the worst parts of the country to pick, I would have thought. My daughter went to uni in Falmouth and it was a bit of a bubble to live in. No wonder mortgage companies are suspicious.

minimike2

Do you own your current property and have a sale agreed on it? I would have thought a memorandum of sale should prove that you are selling up and moving.

Thrugelmir

Tripler wrote: »

This is definitely not the case; it will be my only home.

Might be your home (in some form) but how are you intending to generate an income. Based in Cornwall a lot of your time and money will be spent on travel to your clients spread across the UK.

KnowledgeIsLife

As with anything you need to provide proof as mentioned above if you have your property up for sale an offer etc that shows your selling if you can provide proof that you can work from any location without it affecting your income and affordability in order for a lender to say things like this has your broker submitted full applications to these lenders as a response like this surely can't come before it has been reviewed by an underwriter this is normally a concern I see at that stage but not beforehand

Tripler

Thanks for all the contributions.

I am recently divorced and so the marital home has been sold.
I have been renting an office locally but am closing it because I rarely use it and plan to relocate to Cornwall and can provide evidence of the office closure.

I buy industrial machines from a number of UK and overseas manufacturers and sell them to UK companies, mainly food manufacturers.
My business model is therefore to visit potential customers to identify their needs then source the appropriate machines. The machines are shipped direct to the customer hence I can work from home as a lot of my time is spent writing proposals and communicating with customers and suppliers via email and phone.
Any work I need to have done is carried out by contractors so no employees to manage.

KnowledgeIsLife

Seems pretty straight forward I would try find out how and why these lenders have come to this conclusion

Thrugelmir

Tripler wrote: »

My business model is therefore to visit potential customers to identify their needs then source the appropriate machines.

The big issue is why you base you would base yourself so remotely given the nature of your business. Travelling up and down the M5 etc isn't easy at certain times.


Where in Cornwall out of curiosity?