Personal borrowing hampered by BTL mortgages?

Personal borrowing hampered by BTL mortgages?

16:03 PM, 12th May 2022, About 2 years ago 2

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Has anyone else found that since the financial crash of 2008 you are unable to get so much as a credit card?

We previously had our mortgages in business loans with a single lender. This loan didn’t appear on our personal credit searches and we had no trouble getting credit approved for personal lending such as car loans, overdraft facilities or credit cards. Since 2008 our lender (Yorkshire Bank) withdrew from the property business sector and we were forced to remortgage all our BTLs individually with various lenders and now each and every mortgage appears on our personal credit records.

I bought a new car in 2020, intending to take out finance with the dealership, and had to pay in full in cash because no lender would touch me for a personal loan! I opened a new current account with Nationwide, using the account switch and was refused an overdraft facility, despite having had a long-standing overdraft facility and credit card with my previous bank.

I know this is fairly low down on the list of negatives of being a full-time landlord these days, but I can’t be the only one. Lending software, just sees a huge amount of debt and looks at your post business expenses income and says “high risk”, “Computer says NO”.


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Jo Westlake

11:25 AM, 13th May 2022, About 2 years ago

It can be a problem as credit reference agencies only look at debt, not income. Also if you buy property as a couple both of you will have the entire joint debt listed on your personal credit report. If you buy in four names (which can be good for CGT purposes) all four of you will have the entire debt listed against each of you.
For mortgages it isn't too bad if you deal with a company where the underwriters are willing to phone you to discuss their concerns. Some lenders will, others just say no. For other types of finance it can be a nightmare. The last thing any of us want is a hard search that doesn't result in the finance we have applied for.
Nationwide are unpredictable. I've had an account with them for about 30 years and sometimes they'll lend to me, other times they won't. No obvious reason, it's just the way they are. As a bank they have their uses but I wouldn't want to have them as my only bank account. Although they are a big BTL lender they are sometimes very harsh with their attitude to BTL income. They are also very good at doing a hard search before saying no.
Banks all vary in their attitude to landlords so just because Nationwide is being difficult for you it doesn't mean all banks will be equally difficult.


15:31 PM, 13th May 2022, About 2 years ago

Thought I was the only one lol
My big bro and me actually got invited to a very posh good customer dinner in a 5 star Cambridge Hotel with a even a 3piece woodwind classic music orchestra.....not bad for 1960s working class council house chaps, as a valet my mate actually wrote off a customers e-type, as he tried to park it in 1968 lol.....long of the short black monday or one of them crashes.......I was told I was now in fact a bad credit risk, ive never missed a mortgage payment, still never have.....thats what intelligent finance people do, intelligent, but lack the common sense IQ.....all imho, they are still slogging in the rat race 50-60 hours a week, im not, xxx🤦‍♀️💕

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