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Good afternoon,I currently have 9 BTL mortgages and applied for another today and unfortunately got declined due to an internal credit score. I have no adverse credit whatsoever - but said I would get accepted at a lower LTV, so I've gone for that. I've been told that it's because of the amount of credit checks that I've had over the last 12 months - most for mortgages / other purposes?How do big-time landlords cope if I am being rejected due to credit checks?I am looking at financing a new car (circa £80k) and I am concerned that this will impact my ability to gain BTL mortgages. I was always under the impression that BTL lenders didn't take this stuff into consideration?Thanks
An interesting conundrum.
Firstly, you have correctly identified that it is the credit score, and not the credit check (two different things) that has possibly affected your application for a mortgage - although if this is the case then you'll be pleased to know that there are several lenders who do not credit score at all, so maybe you should look at their product options too.
A car finance application will temporarily reduce your credit score further. Yes, BTL lenders do take this in to consideration. Especially if your portfolio is highly leveraged and the risk to the lender is greater due to a low ICR and high LTV. They will also look at your 'other' occupation and income and possibly assets and liabilities as well. The world for portfolio landlords has changed.
A specialist BTL Broker can help.
Contact the Team at Property Tribes Financial Services anytime to review your options from across the market.
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PROPERTY TRIBES FINANCIAL SERVICES
CONTACT US FOR LIFE INSURANCE QUOTES AND STRATEGIES. PORTFOLIO MORTGAGES (VARYING TERMS) COVERED
MULTI CREDIT REFERENCE AGENCY REPORT, IN ONE DOCUMENT HERE.
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Thanks for this guys, I really appreciate your help - makes some sense now. Yes, that's what the lender had said, it was a score, not necessarily anything adverse. They did accept me on a lower LTV product though. I do have some personal debt alongside, not a massive amount - just a couple of credit cards and a loan that was taken to refurb our house a couple of years ago.
I spoke to they chap that organises my car finance for me - he's a broker, he said that the car finance should really be showing up as a 'hire purchase' style agreement - therefore as a secured debt. If I don;t pay for it, they'll come and take the car etc.
Does this sound correct?
well........ I agree that the car finance is technically secured against the car, but in the mortgage world, its regarded as unsecured borrowing.
Credit scoring is incredibly complex and each lenders methodology is different - your postcode, self employed vs employed, % of utilised credit on credit cards, duration in employment and many, many other factors will influence the score - and this will be different for each lender. So whilst I know this must have been really disappointing for you, I wouldn't rule yourself out of mortgages going forwards, even at the higher LTV, it just comes back to knowing which lenders to approach.
Does this help?