Remortgage problems

marneyr

Hi All, 

Currently 3 years into a 1.2% fixed 5 year mortgage deal and very happy about this. I want to extend and convert loft so need to borrow more. Mortgage broker says that current lender wont take the risk as i own a joint investment property (50%) and it didnt turn a profit last financial year. It didnt turn a profit as it was empty and we undertook quite extensive refurbishments. They dont want to seem to know this and atill refuse to lend. Is this unreasonable? Thanks. 

Hoenir

It's a commercial lending decision. That's the bottom line. Nothing personal but your application doesn't meet the criteria set. 

ACG

There is not enough information. 
Ultimately you need an income to support the mortgage. If you have the income and the reason for the decline is this investment property which is a side business for example, then it seems a bit harsh. If this investment property is your main source of income and there was no income well you have no income to service the mortgage.

MWT

marneyr said:

Currently 3 years into a 1.2% fixed 5 year mortgage deal and very happy about this. I want to extend and convert loft so need to borrow more. Mortgage broker says that current lender wont take the risk as i own a joint investment property (50%) and it didnt turn a profit last financial year. It didnt turn a profit as it was empty and we undertook quite extensive refurbishments. They dont want to seem to know this and atill refuse to lend. Is this unreasonable? Thanks. 

Did you need the income from the rental to meet the affordability requirements for your existing mortgage?

Is the rental property let at the moment?

Ultimately it is up to the lender to decide of course, but if you don't need the income from the rental to meet affordability on the new increased mortgage you want and the rental property is now let again it would seem that your broker should have at least some chance of making a case if they have those details...