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Refused mortgage because bank thinks we will rent it out

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Comments

  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    AW618 said:
    Totally strange, the banks surely know no one is piling into BTL now?
    No, what's strange is you selling up to rent 20 years ago and stil trying to pretend you did the right thing.  Utterly delusional. 
    Here's a suggestion for you.  Stop posting until the crash actually arrives.  After all, it will only be a few weeks, won't it, according to you.  It's only been a few weeks away for 20 years, but let's not worry about that.  
    Obviously you piled into BTL? 
  • saajan_12
    saajan_12 Posts: 5,333 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    The bank isn't necessarily accusing you of definitely doing anything. They're just saying there's a chance and they'd rather not get their money involved to find out. Its their choice whether to lend, so you can try convincing them but if they still refuse then your options are 
    (1) rent in the area first to demostrate the working location 
    (2) find another lender (perhaps via broker)
  • We had a very similar problem at a property we wanted to buy. It was a HMO and we wanted to buy it and turn it into our family home. Unfortunately the bank didn't believe us either. The only solution was to go to a different lender and disclose from the beginning that it was a HMO but we'd take vacant ownership and we wanted it to be our home.
    Sorry to say, sadly, still didn't work. We got the same answer. They didn't believe we wouldn't be renting it out even though we were first time buyers and it was about 500m away from where we were renting...
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    AMJ1974 said:
    Unfortunately the bank didn't believe us either.
    Banks write business at the macro not the micro level. In their experience , of which they have decades to call on, people have a propensity to lie. As a consequence the lenders board will make a commercial decision to decline applications accordingly.  It's nothing personal. 
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    dimbo61 said:
    Not sure about the death of BTL and student HMO BTL yet as I know someone who has purchased a few in the last 12 months.
    With a good business plan, support from the banks and good rental yields plus scope to add value by undertaking major refurbishment and extensions the rental market might survive.
    Can`t see there being much support from the banks going forward TBH.
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