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  • FIRST POST
    • confused_southampton
    • By confused_southampton 5th Feb 18, 4:38 PM
    • 3Posts
    • 0Thanks
    confused_southampton
    Too many properties?
    • #1
    • 5th Feb 18, 4:38 PM
    Too many properties? 5th Feb 18 at 4:38 PM
    Advice needed please-
    My wife and I have lived in our existing property for 20 years. 15 years ago we purchased a flat for my mother to live following a difficult divorce. This property was a cash purchase and has never been mortgaged. My mother still lives there.
    Around 5 years ago my wife and I purchased another property for my mother-in-law following the death of her husband. This property is now also mortgage free and occupied solely by her.

    My wife and I are now looking to move home and have applied for a new mortgage with our existing lenders. They have declined our application due to the fact that we have 3 residential properties in our name, quoting FCA rules?! 'They' state they will not permit ownership of more than 2 residential properties regardless of whether they are mortgaged or unencumbered and regardless of whether or not they are occupied by dependent family. Essentially they have said we need to stay put until one of our parents dies.

    Does this sound right? Getting nowhere with our mortgage providers over the phone. Reluctant to switch lenders unless we really have to, as we have a redemption penalty on our fixed rate mortgage.

    Any advice gratefully received.
Page 1
    • kingstreet
    • By kingstreet 5th Feb 18, 4:59 PM
    • 33,176 Posts
    • 17,912 Thanks
    kingstreet
    • #2
    • 5th Feb 18, 4:59 PM
    • #2
    • 5th Feb 18, 4:59 PM
    Your lender is making it up as it goes along.

    There is no FCA rule governing the number of residential properties you can own.

    However, your lender can lend to you, or not, at its discretion. It would be really, really helpful if people named the lender to whom the thread applies when they post it.
    I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.
    • YHM
    • By YHM 5th Feb 18, 5:01 PM
    • 506 Posts
    • 189 Thanks
    YHM
    • #3
    • 5th Feb 18, 5:01 PM
    • #3
    • 5th Feb 18, 5:01 PM
    Yep, lender is chatting twaddle.

    Sounds like you will need to make a decision as to whether to stomach the ERC for the good of the move or not
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, 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
    • confused_southampton
    • By confused_southampton 5th Feb 18, 5:24 PM
    • 3 Posts
    • 0 Thanks
    confused_southampton
    • #4
    • 5th Feb 18, 5:24 PM
    • #4
    • 5th Feb 18, 5:24 PM
    Your lender is making it up as it goes along.

    There is no FCA rule governing the number of residential properties you can own.

    However, your lender can lend to you, or not, at its discretion. It would be really, really helpful if people named the lender to whom the thread applies when they post it.
    Originally posted by kingstreet
    As a newbie, wasn't sure of the etiquette regarding naming other parties. My current lender is HSBC and has has been for many years.
    • confused_southampton
    • By confused_southampton 5th Feb 18, 5:30 PM
    • 3 Posts
    • 0 Thanks
    confused_southampton
    • #5
    • 5th Feb 18, 5:30 PM
    • #5
    • 5th Feb 18, 5:30 PM
    Yep, lender is chatting twaddle.

    Sounds like you will need to make a decision as to whether to stomach the ERC for the good of the move or not
    Originally posted by YHM
    I'm happy to stomach the ERC as you say, but i'm reluctant to submit another application if I'm going to get rejected by another lender with the same restrictions. MSE Advice on this page, "if you are rejected for a mortgage, do not apply again for another until you understand why you were rejected in the first instance so you don't destroy your credit file with multiple (failed) applications"
    I have engaged the assistance of a broker today so see if they can assist? I don't want to apply again until I'm sure there is a good chance that it is going to be accepted.

    Thank you.
    • kingstreet
    • By kingstreet 5th Feb 18, 5:31 PM
    • 33,176 Posts
    • 17,912 Thanks
    kingstreet
    • #6
    • 5th Feb 18, 5:31 PM
    • #6
    • 5th Feb 18, 5:31 PM
    You tend to find organisations with little exposure to the outside world quote internal policy as if its handed down from God, the FCA.

    Unfortunately, having niaive and uneducated staff isn't an offence and a lender can make its own rules, however arbitrary they may appear.

    I'm afraid if you want out, it's the ERC for you, my lad. Anyway, you can always think back on all that time you've had the best rates in the market and how you've never needed to know the truth...

    There are numerous, decent lender options open to you.
    I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.
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