Appealing a decision

Thanks ACG. They said it looked like I was living on credit as my earnings were so low and the credit cards were so high, however my company (am self employed) owes me a fairly big sum so I've been taking that bit by bit annually on top of the earnings, hence the low earned salary. The middle man I was dealing with at Aldemore said not to put that on the original application but on the appeal I've asked for the info to be given to the underwriter as it doubles my annual income and explains the low earnings. Also the company is in the slight negative on the balance sheet but only because it owes me from the historic loan and of course I'm not an unfriendly creditor, put the loan to me to one side and the balance sheet is well in the positive. Have explained that, as well as fact that credit cards haven't been used since I used them for one-off purchase to buy the car last year (all credit cards are currently on 0%) which I can prove with statements. I was obviously borderline for them to have gone to valuation so am hoping I've given them enough to persuade them.

Thanks ACG, that's a concern, yes some is from the DLA. I also forgot to include £1600 per year child benefit which hopefully might help tip a balance if we're borderline. Along with fact I've reduced the cc debt by 25% this week. Not sounding hopeful though, on what you say...

Thanks ACG, that's super helpful. I'm not using a broker, it was a broker friend who recommended Aldemore so they've been guiding me doing it direct and were gobsmacked when we got the no after the DIP and valuation, particularly as we answered at least 8 questions from the underwriter before they authorised the valuation. No new info came to light after the valuation so the apparent u-turn was an unpleasant surprise (and it took three weeks from the valuation for them to give the decision).

Are you able to say which other lenders deal with self-employed? My LTV is 33% and I'm doing this on a holiday let flat I own outright. Which btw makes their decision more baffling as it's a commercial buy to let mortgage so no minimum income requirement.

Really appreciate the viewpoints.

Thanks again ACG. The rent more than meets their criteria, way over the 150% (as applied for interest only), and it's on a 5-year fixed. So I'm not sure why the u-turn, particularly as there was no new info to what they had prior to their initial quite detailed underwriting and instructing the valuation.

Very frustrating. I'll see what they say in light of the DLA and CB figures I gave them, as you say they may not count them as income but given no minimum income requirement then it should at least demonstrate to them I'm not living on credit as they thought when just going on the low earned income figures alone.

I really appreciate all you've advised, thank you. I'll let you know what they say!

Hi Thrugelmir, yes Aldemore are one of the few who will consider lending on a holiday let property, they value it at the fixed term rental value. What's confusing me is they had all the details about the various factors (comparatively high cc debt due to car purchase, company figures, low earnings because of supplement from DLA etc) and they clarified them all before authorising the valuation. Then three weeks later they declined stating the simple headlines of all the info they had at the start.