BTL loan with bad credit issue - please help

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  • leasee123
    replied
    A bad credit record just for being overdrawn by £100 and paying it back soon after? What a joke. Which bank is this so I and others can avoid them with a bargepole?

    OP - if you missed out on this property I wouldn't be so disappointed with such low yield. Capital appreciation, even for London, is not a certainty. At this stage there quite a bit of risk you would have taken for very little yield.

    Probably a good idea to have a overdraft facility, set up text alerts whenever over drawn and try using credit cards as much as possible for payments.

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  • loanarranger
    replied
    I have revisited your posting and researched funding options given the change in lending criteria of many lenders.
    Given that the default occurred in 2018 I can confirm that given the remedial action taken by you will now enable you to obtain lending from several mainstream BtL lenders, for some the rates might not be prime but the rates are competitive in the overall scheme of things given that defaults or worse CCJ’s have a hang over period of anthing between 3 yrs and 6 years when of course such matters are expunged after 6 years.

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  • Gordon999
    replied
    Did this bank know that you have £350K sitting in another account ?

    You should make a complaint to the regulator ( FCA ) : https://www.fca.org.uk/ab "


    "We aim to make financial markets work well so that consumers get a fair deal"

    Leave a comment:


  • trippyvibes
    replied
    Unfortunately yields in London, especially central are not the best but there is capital appreciation.

    I contacted my bank a few weeks ago and explained the personal circumstances that led to me defaulting and asked them desperately to reconsider removing the strikes but they would not budge. Despicable...

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  • loanarranger
    replied
    That is very true but a reflection of the London Market. I have a 2 bed Penthouse close to Docklands , value before the issues of cladding etc £520000 with rent of £1750 per month. Capital appreciation has been good , but the yield is fair but accepted as not brilliant.

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  • Gordon999
    replied
    Also theartfullodger said keep looking for better property. He did not think this property was priced to give good enough yield .

    Paying £540K for annual rent of £19,200 is only 3.5% gross yield.

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  • loanarranger
    replied
    The removal of a Default is at discretion of the lender given that such matters do not reach the Court , whereas if it had then a County Court Summons would have been issued but expunged from the records if paid before the 28 day grace period. Had the issue arisen from a problem with a telecommunication firm lenders are normally inclined to ignore such matters.

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  • Gordon999
    replied
    I was thinking that someone who is worth £350,000 should not held back by a £100 debt for 3 months .
    Could OP apply to the local magistrates court for removal of £100 debt record ?

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  • loanarranger
    replied
    The analysis of the lenders was done in 2019 and unfortunately for some their criteria has changed , however much depends on when the credit issue arose , there is indeed greater tolerance where the issue is historic ( 3 years plus and satisfied at least 12 months ago) , where it is more recent then thresholds come into play in terms of the debt.
    For many lenders their capacity for accepting adverse credit applications is governed by the “Warehousing Agreements” which are put in place by the Institutional Funders and even conventional lenders have constraints placed upon them insofar as the amount & percentage of total lending.
    A good broker armed with all the material facts and financial data should be able to filter out the definite No’s to those that on paper have criteria that accommodates the type of adverse etc which the enquiry has.
    I am sure that a positive outcome might become available to the OP.

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  • Gordon999
    replied
    "Which Report" have produced a report for persons with bad credit rating to get a mortgage. : Difficult.

    https://www.which.co.uk/money/mortga...s-ay2m91n0u9mu

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  • trippyvibes
    replied
    Please and kindly proceed and I am grateful for any help you can provide. I have Equifax account and can obtain a report any time you would want me to do so. I will private message you my contact details. I am not putting my hopes high and I appreciate your good efforts, thank you.

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  • loanarranger
    replied
    With your permission and without obligation I am quite happy to discuss your situation with lenders whose criteria might accommodate such an application. I cannot guarantee anything but I am prepared to help .
    Might I suggest that for your own point of reference thatyou actually ask these brokerages as to whom they submitted your application alternatively you can get an updated Credit Insight from either Equifax or Experian the two key credit agencies who are used by the vast majority of lenders.

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  • trippyvibes
    replied
    loanarranger,

    The amount of the default was approx £130 and I credited the said bank account in February with more than the required to return it back into credit. My salary is paid into a different bank account. My bank accounts are always run in credit. I never default on payments, until this one.

    I am not sure how many lenders were approached and which ones now, but when the first broker could not secure a loan, I was forced to consider a different one.

    i am a home owner and with a mortgage. I also own a BTL flat in central London with a BTL loan on it. I have never defaulted on either.

    Thank you for your help, I appreciate it.

    Leave a comment:


  • theartfullodger
    replied
    Price £540k, rent £1,600 pcm... Keep looking for a better property.

    Leave a comment:


  • AndrewDod
    replied
    A great example of how the current system of algorithm based banking is defective. In the old days you wouild have sat in from of the village bank manager who would have assessed risk.

    Now they give massive loans to all sorts of ultra high risk folk who have no history of managing money properly and there is no sense at all. It has already led to one major financial crisis but that's only the start -- we are looking at mass loan defaults and high interest rates in the decades ahead.

    Leave a comment:

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