Son having difficulty getting credit with his name on a joint BTL

by Readers Question

12:03 PM, 5th October 2017
About A year ago

Son having difficulty getting credit with his name on a joint BTL

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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



Comments

Neil Patterson

12:06 PM, 5th October 2017
About A year 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.

Mark Alexander

6:50 AM, 6th October 2017
About A year 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)

Mark@property118.com

All the best

Mark Alexander - founder of Property118

Barbara Gwyer

11:45 AM, 6th October 2017
About A year 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.

Mark Alexander

12:24 PM, 6th October 2017
About A year 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 - mark@property118.com

Puzzler

16:08 PM, 6th October 2017
About A year 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?

Barbara Gwyer

19:54 PM, 6th October 2017
About A year 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!!!

Puzzler

8:50 AM, 7th October 2017
About A year ago

I was referring to the remortgage not the mobile phone


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