Son having difficulty getting credit with his name on a joint BTL
My son has come up against a credit problem which, to be honest, has me and my accountant stumped.
I have a number of buy to lets, and put his name on two of them never in a million years thinking I was going to create problems for him. He contributed nothing to these, and he’s never had any involvement in either – I pay all the mortgage payments out of my property bank account and collect the rents – until he opted to buy out my half of one so that he could live in it.
This involved replacing the existing mortgage for a residential one – an easy thing one would have thought except most lenders wouldn’t entertain him on account of the BTL on the other property.
We managed to get over this hurdle a month ago and the purchase has completed. However his woes continue as he has now had his application for a new mobile phone turned down on account of insufficient income to support his current outgoings even though we have neither ever defaulted on a payment for anything.
I wonder has anybody else come up against this please and how did they resolve it?
Many thanks
Barbara
7 comments on this article
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Member Since February 2011 - Comments: 3462 - Articles: 286
12:06 PM, 5th October 2017, About 9 years ago
Hi Barbara,
Any mortgage is joint and several security no matter who actually pays.
However, your comment about the mobile phone is making me think there is something on your son’s credit check he is unaware of. I would recommend he request his own full credit check from Equifax and Experian just to be on the safe side.
Member Since January 2011 - Comments: 12255 - Articles: 1477
6:50 AM, 6th October 2017, About 9 years ago
I agree with Neil, there must be something showing on your sons credit profile other than mortgages which is causing issues. The link below is a blog explaining how he can get a free copy of his credit profile
https://www.equifax.com/personal/education/credit/report/how-to-get-your-free-credit-report
Once he’s got that, if you cannot see what the problem is, scan and email it to me and I will have a look for you (no charge)
[email protected]
All the best
Mark Alexander – founder of Property118
Member Since January 2015 - Comments: 61
11:45 AM, 6th October 2017, About 9 years ago
Reply to the comment left by Mark Alexander at 06/10/2017 – 06:50
He says his credit score is 999 on Experian (not that he has ever had much credit to affect that). The stumbling block is the affordability score which has listed him as very weak for both credit card and loan affordability on account of the two mortgages.
Member Since January 2011 - Comments: 12255 - Articles: 1477
12:24 PM, 6th October 2017, About 9 years ago
Reply to the comment left by Barbara at 06/10/2017 – 11:45
None of that makes any sense. Please send me the Equifax report so that I can take a look – [email protected]
Member Since July 2013 - Comments: 1268 - Articles: 1
4:08 PM, 6th October 2017, About 9 years ago
I don’t think anyone’s score is 999! You are aware that he will have to pay enhanced SDLT on account of the B2L mortgages? As a matter of interest, why are they in his name as well? is it for inheritance?
Member Since January 2015 - Comments: 61
7:54 PM, 6th October 2017, About 9 years ago
Reply to the comment left by Puzzler at 06/10/2017 – 16:08
My credit score is 999. Also why mention SDLT when we’re talking about a contract for a mobile phone!!!
Member Since July 2013 - Comments: 1268 - Articles: 1
8:50 AM, 7th October 2017, About 9 years ago
I was referring to the remortgage not the mobile phone