Buy to let remortgage

Fazzy123

Hi all,

Completely new to this forum so please go easy on me if I do something wrong!

I am looking at remortgaging my buy to let property and raising an additional amount for debt consolidation and home improvements. I have spoken with a fee free mortgage broker who applied for additional borrowing through my current lender (Birmingham Midshires), this was declined due to my credit, an application was then put through Aldermore which also declined due to my credit and me currently living with my partner and not owning my own home. 

I feel the broker does not have my best interests at heart and does submitting applications and hoping for the best therefore I am now looking for a new broker. 

My question to this forum is;
i) is it possible to get a buy to let mortgage without me owning my own home? 2 years ago this was no problem with BM solutions but my mortgage broker says it’s very difficult.
ii) my credit is not particularly bad, I have 1 missed payment in 2019 which I hold my hands up to as I forgot to pay a credit card bill, this was repaid in full but shows 1 month late on my credit report. I have do defaults or CCJs however I have quite a few hard searches for credit applications for a few unsecured personal loans I took out for home improvements. 

Thank you all in advance for your replies!!

JJG1984

Can you not sit for 6 months for the hard search’s to have less affect as it currently renders you desperate for credit

K_S

@fazzy123 BM to Aldermore is a big drop!

- With 2+ years as a landlord, you will be classed as an 'experienced landlord' by most lenders. Not being an owner-occupier will mean a smaller pool of lenders, but shouldn't be a show stopper on it's own.

- One missed payment in the last 2 years and a few hard searches shouldn't be a show-stopper on it's own either

Based on the limited info in your post, I don't see an obvious reason why you shouldn't be able to do a capital raise remortgage, but there must be something (excessive debt to be consolidated probably) that needs a bit of thought to place with a lender, if it's was packaged properly and then you were declined by Aldermore. Was this declined at DIP or full application?

I have nothing against fee-free brokers (I myself don't always charge a fee) but they might not always be suitable for cases that aren't straightforward, like debt-con remos.

Fazzy123

Thanks for taking the time to reply, I realised how big a drop BM to Aldermore was when I found out the interest rate! The DIP for Aldermore was referred but then accepted and later declined by an underwriter.

The property value is £240k and the outstanding mortgage is 98k with a monthly rental figure of £850, I was looking to raise an extra 50k to clear 4 unsecured loans I have. The broker before has really shattered my confidence on achieving this but good to hear this can be done! 

Would high street lenders not consider this due to the hard searches on my credit file? 

K_S said:

@fazzy123 BM to Aldermore is a big drop!

- With 2+ years as a landlord, you will be classed as an 'experienced landlord' by most lenders. Not being an owner-occupier will mean a smaller pool of lenders, but shouldn't be a show stopper on it's own.

- One missed payment in the last 2 years and a few hard searches shouldn't be a show-stopper on it's own either

Based on the limited info in your post, I don't see an obvious reason why you shouldn't be able to do a capital raise remortgage, but there must be something (excessive debt to be consolidated probably) that needs a bit of thought to place with a lender, if it's was packaged properly and then you were declined by Aldermore. Was this declined at DIP or full application?

I have nothing against fee-free brokers (I myself don't always charge a fee) but they might not always be suitable for cases that aren't straightforward, like debt-con remos.

Thrugelmir

Fazzy123 said:

I was looking to raise an extra 50k to clear 4 unsecured loans I have. 

This will be the "credit" issue that the lenders approached will have picked up on. There'll have looked at the manner in which the debt has been accumulated. Goes without saying that it's a sizable amount to owe on unsecured terms. 

K_S

Fazzy123 said:

Thanks for taking the time to reply, I realised how big a drop BM to Aldermore was when I found out the interest rate! The DIP for Aldermore was referred but then accepted and later declined by an underwriter.

The property value is £240k and the outstanding mortgage is 98k with a monthly rental figure of £850, I was looking to raise an extra 50k to clear 4 unsecured loans I have. The broker before has really shattered my confidence on achieving this but good to hear this can be done! 

Would high street lenders not consider this due to the hard searches on my credit file? 

K_S said:

@fazzy123 BM to Aldermore is a big drop!

- With 2+ years as a landlord, you will be classed as an 'experienced landlord' by most lenders. Not being an owner-occupier will mean a smaller pool of lenders, but shouldn't be a show stopper on it's own.

- One missed payment in the last 2 years and a few hard searches shouldn't be a show-stopper on it's own either

Based on the limited info in your post, I don't see an obvious reason why you shouldn't be able to do a capital raise remortgage, but there must be something (excessive debt to be consolidated probably) that needs a bit of thought to place with a lender, if it's was packaged properly and then you were declined by Aldermore. Was this declined at DIP or full application?

I have nothing against fee-free brokers (I myself don't always charge a fee) but they might not always be suitable for cases that aren't straightforward, like debt-con remos.

@fazzy123 Not possible to say for sure with the limited info in your post, but in theory it *should* be possible to do the debt-con remo you're looking for. If you don't have confidence in the current broker, consider finding another one. Unless you're talking about multiple hard searches in the past few weeks, that's unlikely to stop you getting a mortgage.