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Hi All,I have just applied for a BTL mortgage with a high st bank through a broker. It is a portfolio landlord product. We (wife and I) have 6 properties. Total Mortgages £760,400 Value of properties £1,700.000.
New property £217,000 Mortgage £130000 deposit £87,000. Rent £800 to £850 pcm.
Household income Pension (1 person) £36,000. Plus rental income £85,000 gross, £45,000 net of mortgage, mainten, agency fees etc. So total Pre tax income between two people £81,000.
We currently rent our own house at £2,250pcm. have no dependants, no other borrowings. The bank has just declined on affordability, as they do not count the "rental income" in their calculations.
Am I going mad? What is a "porfolio" landlord product for, if it does not take property income into consideration?
I am being told that there is no appeal, and that the decision if final.
How can I complain, get this decision reviewed?Paul
Hi Paul,I think the clue is in "High Street" bank. These lenders are much more conservative and only have a handful of products and your broker should certainly have been aware that their criteria did not take into account rental income.There are specialist BTL lenders who would be a much better fit for you and who will include the rental income. I suggest you contact the team at Property Tribes Financial Services and I have no doubt they will be able to assist you. The number to call is 01206 654444.Hope that helps and good luck!
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Hi, drop us an email. There are plenty of non high St lenders that will consider you.
Financial Consultant working with Property Tribes Financial Services.
Always cover your debts, don't leave them for your loved ones to pick up. Ask me how - email@example.com
Your broker should have absolutely known about that criteria and placed your enquiry elsewhere.
We work on this basis;
We work with the high street banks, and also the secondary and specialist banks and lenders too.
For a professional service, quotes and personalised advice, contact us anytime.
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I would just like to add to my colleagues posting above. The average Broker does not deal with BTL day in day out. This is our life blood and we know the market in depth.
I can sense your frustration! I can see the injustice! This type of proposition should be quite straight-forward for us to place. I urge you to give us a call to investigate your options further.
BTL's, residential mortgages, bridging, life cover and estate planning
For Commercial Finance, complex BTL and HMO funding, development finance, international and expat mortgages, and portfolio BTL mortgage services Assured Funding website.
Telephone: 07751042485 01206 654444
I have to say I agree with the above comments. This should be fairly straight forward assuming you have declared it all for tax purposes.
Give me a call if you need any help.
Chartered Accountant, Tax Advisor and Mortgage broker
(and BTL portfolio owner)
Whatever you do though Paul, don't be persuaded to incorporate your portfolio as it's likely to be the biggest and most expensive mistake you'll ever make.
Less Tax For Landlords
0203 735 2940
Hey there Tony, why do you say this? Surely it must be evaluated in a case by case basis. From what I understand high tax band landlords with full time jobs will benefit from an incorporated portfolio. Is this incorrect?
Incorporation only works if you'll never need the income or don't mind paying inheritance tax.
Yes, everybody's situation is slightly different and does need to be evaluated on a case-by-case basis, but in over three years and after talking too thousands of landlords we're yet to find one for it makes any kind of commercial sense. Worse still, we never found a single adviser (be that accountant, mortgage broker, or anyone else in the sector for that matter bar one) who tells their putative client what the real costs of incorporation are.
Please bear in mind that the ability for limited companies to offset 100% of their finance costs is only a small part of of a much bigger picture.
Yes, I agree