Any mortgage lenders out there if I have a CBILs application outstanding?

by Readers Question

9:49 AM, 25th August 2020
About a month ago

Any mortgage lenders out there if I have a CBILs application outstanding?

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Any mortgage lenders out there if I have a CBILs application outstanding?

We took a Business Bounce Back Loan (BBL) for legitimate COVID-19 related reasons and would benefit greatly from a CBILS which is now made available for bridging and asset finance to re-finance the BBL + bridging loan which we had to utilise to re-finance an investor when our mortgage offer was withdrawn due to covid/lockdown.

A mortgage would be the next best option, but concerns remain over mortgage co’s rejecting/withdrawing offers due to BBls/CBILs taken.

It seems odd to be offered these loans as a way to continue business only to end up worse off if we apply, especially should we fail some lender’s CBILS criteria.

Are there any mortgage co’s still lending when these loans taken/applied for?

We were a viable business prior to COVID-19 and able to service both CBILS or a mortgage.

Appreciate any advice or input.

Elizabeth


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Comments

rwjohnson

14:05 PM, 25th August 2020
About a month ago

all depends on the numbers - if you can show the deposit monies for this new purchase are not part of the Cbil's funding then possibly OK. Lots of other criteria apply also...

That of course leads to other questions - as per the Cbils application...esp you have been adversely impacted..

You need to show that your business:
would be viable were it not for the pandemic
has been adversely impacted by the coronavirus

richard@rjmortgagefinance.co.uk

Howard Reuben CeMap CeRER

16:03 PM, 25th August 2020
About a month ago

Hello Elizabeth

Many of the banks are showing sympathy for businesses and individuals who have been financially affected by the covid-19 pandemic. They are taking a view on a case by case basis and so because of that there are no hard and fast rules between them.

Some lenders will decline, some will accept, some will defer their agreement to lend.

One reason why it comes across as a negative situation is that albeit the loans and grants were being touted by the Government as a 'must have to help you to survive in business' proposition, actually what every single borrower has truly done is to present themselves as financially distressed, unable to fund themselves after just a month or two, and painting a picture that their finances are actually quite fragile with no savings or underpinning financial security to aid them through a short term downturn in business.

That may or may not have been the case for you personally, but that is the image every CBILs and BBL borrower has painted.

With that in mind, any new remortgage or purchase mortgage application is scrutinised individually and extra questions, forms and supporting evidence is required.

This may lead to a perfectly fine decision and 'carry on as usual' mortgage application, or it may not. Either way, you won't know for sure unless you speak with a Broker who can assess your current situation, and source the options you are eligible for.

You can contact me and my Team via my profile link.

Hope this helps.


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