Shopping around killing your mortgage credit score :-(

[Deleted User]

Are you trying to remortgage an unencumbered existing Buy to Let?  
Where does your income of £45k come from? Is this from a self employed job or does this already include the rental income you are receiving?   

To answer your question at the bottom,  the lender reduces the loan amount if higher rate tax as you get to keep less of your money to pay the property costs.  
Not all lenders reduce the amount for higher rate though. 

What lender are you trying to mortgage with?

Cash_Cow

Hi - appreciate the input :-)
It's a remortgage to gear funds - >>redacted for privacy as thread has run its course<<

Cash_Cow

Any further thoughts or conclusion guys? If I leave it all for 6 weeks and get another quote would  that give me better results ? Still not much the wiser really - even did an experian report today and got 999 as the rating - max!  Cheers 

[Deleted User]

The lender will lend you less as it has assessed you as a higher rate taxpayer. There is nothing that will change this. Their calculations and assessment techniques will have been discussed and signed off by the regulator with little leeway. Your credit score is not in question in any way. 

Either seek a lender that will either : - assess you as a basic rate tax payer
Lend more to you under their higher rate taxpayer calculation
Ignore the assessment of your tax status altogether 
Perhaps use your personal income to top up the btl loan (this is called top slicing) 

Cash_Cow

Thanks - but finding a suitable lender that doesn't move goalposts seems to be affecting my credit rating! Arghhh! 

[Deleted User]

It would only affect your credit profile if you are doing multiple applications.

The broker should be putting this in front of the business managers, saying ' here's what's happened with MW, what would your lender do?' and then applying once he/she has confirmation of the lenders take on your income

Personally, I have never had a btl change loan amount unless its a down valuation. I don't really see how it happened but there can't be any reason for it to happen again. 

[Deleted User]

Cash_Cow said:

Any further thoughts or conclusion guys? If I leave it all for 6 weeks and get another quote would  that give me better results ? Still not much the wiser really - even did an experian report today and got 999 as the rating - max!  Cheers 

Are you still attempting to DIY this or are you now using a mortgage broker?  If it's the former stop messing around and find yourself a broker.  Alternatively you could apply to Experian since they rate you so highly. 

Cash_Cow

Its very clear that I'm using a broker - see last post on previous page for eg!  Also you can't DIY many BTL's - BM and MW won't deal direct for e.g. There is no advantage in NOT using a broker as you don't get the £1800 commission yourself! I guess your last line shows its the internet and i'm really putting myself out there!

I dug out what the second lender said in offering me less than the first "We did a decision in principle on this (I guess that means a full credit search?) and max loan is currently £339k despite their calculator showing £377k". 2 whole weeks pass and i get a bit more explanation as to why “Client to have a minimum income of £30,000 ( I do) and achieve credit score requirement to qualify for a lower stress rate”.  I have no clarity on 'credit score requirement'.

Lets just wrap this up; best i try again in 4 weeks with preferred but lowball second lender as an approach? Its a good deal in principle! 

I appreciate all your input as i sometimes feel like quite the newbie!

amnblog

So the curve ball is that this is a BTL case which is totally different scenario.
£400K lending on £1975 income is technically possible with about 10 lenders (from 8 of which, I suspect you wont like the available rates). In Practice it can be highly complex with earned income a factor in some cases, and credit scoring a factor in others. The property type can also often be an issue.
Your Broker is best placed to sort this as more information is needed for a clear view than you can sensibly provide here.
If you do not feel you are getting what you need from your current Broker you may consider a second option.

Cash_Cow

Thanks Amn - I guess i have to stick with it for now and see what happens.  It's just all so vague and unclear and i like understanding what's going on and how things works.  The MW one is a 10 year fix which is fine but I have to be 100% that this is the one for me as the early exit penalties are crucifying hence having a look at other market offers - just like I would buying a car! Except its not ;-)