11:32 AM, 14th June 2022, About 2 months ago 5
Since the crash and subsequent restructuring of the BTL market, our business borrowing has gone from a business loan to a lot of “personal” loans that now appear on our credit searches. I imagine this is the same for all landlords unless you own your properties outright. Suddenly our creditworthiness has hit rock bottom, despite having a more than respectable score and a healthy income!
There is nothing factored into the risk assessment software that accounts for landlords with BTL borrowing. It’s clear that the software either just views the borrowing as too risky, regardless of the LTV you may have, or they assume costs are coming out of the net income declared, which of course is an incorrect assumption.
I can’t be the only one facing this frustration, or am I just doing something wrong?
I had to buy a new car with cash in 2020 because I didn’t qualify for any finance. I was hugely fortunate to be able to do that, but there is a big opportunity cost in using cash that way, as we use all our cash reserves for growing our business, so that purchase cost significantly more as far as our long-term goals are concerned than the cash value of the car at that time.
It’s also humiliating to be turned down for finance.
How does everyone else deal with this problem?
Is there a sensible solution?