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BTL Application assessed on Financial Association
Growingold
Posts: 540 Forumite
Why is a Financial Association taken into account when applying for a BTL mortgage in a single name?
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If the rental yield isn't sufficient to justify the size of borrowing a lender will look at the commitments of the borrower. If the borrower has financial associations which would mean they don't have spare cash to effectively subsidise the profitability of the BTL then the lender is going to be concerned.Growingold said:Why is a Financial Association taken into account when applying for a BTL mortgage in a single name?I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
It is one of the things lenders take into account, not every lender does.
But some lenders think it is relevant, presumably something somewhere says you are a higher risk if you are financially associated with someone who is bad with their money.
My experience when working with people who have bad credit is that there is usually a single person who is bad with money or something bad happened which affected both (illness, redundancy etc).
But my experience is a lot more limited than a banks.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1
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