Limited company mortgage refused

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    Limited company mortgage refused

    Hello,
    In the last six months, for our LTD company, we applied for several re-mortgages with different lenders. All refused.
    None of the lender is willing to provide any information about the reason for it. We switched several mortgage advisers (including the NRLA suggested) none of them were able to find the reason or help. We checked our credit score and the company one, all confirmed to be good. All taxes have been obviusoly paid on time.
    We've been in the mortgage high rate for weeks now we really don't know what to do. It seems there is something wrong but nobody is capable to give us a hint.
    It seemed we reached an impasse, any advice on how to find out what is wrong?
    We're NOT looking for mortgage advise, it's from the business point of how to react and rectify to this situation.

    Best Regards
    Riccardo

    #2
    Let me add some more info, we did try limited specific lenders. Also lenders who gave us mortgages in the past. The properties are fully standard build, detached houses and in general real high value.
    To add more to this, lenders refuse the applications before sending the surveyor, that leads us thinking there is something else.
    I can also add that we didn't ask for mortgage holiday, both properties are fully tenanted to families (no HMO) and in profit.

    Comment


      #3
      If the properties are held under your personal names, the limited company will have to purchase the properties from you. Its not a remortgage situation of properties in your name.

      I suggest you approach Nat-West Commercial Bank or Barclays and ask for information about "mortgages for limited companies". The mortgage lender may require a SPV limited company , not a trading company.

      Comment


        #4
        Hello Gordon999, the mentioned properties are fully owned by the Limited Company. So the remortgage is fully within the LTD domain. Our LTD is already an SPV LTD company too.

        Comment


          #5
          Does the Ltd Company have UK address ? Are the company directors resident in UK ?

          Comment


            #6
            Hi Gordon999, sorry for the late reply i didn't notice the message. Yes the company has UK address and all directors are UK residents.

            Comment


              #7
              Originally posted by Riccardo79 View Post
              the mentioned properties are fully owned by the Limited Company. So the remortgage is fully within the LTD domain. Our LTD is already an SPV LTD company too.
              It doesn't sound as if the SPV is the type of SPV a lender would require if it owns more than one property.
              You'd need a specialist portfolio lender.

              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


                #8
                Just thinking out of the box, has there been any changes to the directorships or shareholding’s. If the Limited Co hasn’t changed since the first mortgages were obtained , clearly there is something which may have spooked the lenders , Are there any credit issues affecting any director, are the accounts upto date. Are any of the properties adjacent to each other or are they all in the same road or postcode.
                I must confess that I have never come across such a situation affecting an SPV company. I have just refinance a Company which has 8 BtL properties and all went through without a hitch.

                Comment


                  #9
                  Perhaps worth checking the "other" (secret?!) credit reference agency? If you have made multiple applications you might have raised some flags with the National Hunter database? I can't link to it here but if you search for it online you'll find it....

                  Comment


                    #10
                    Dan Manchester makes a valid point ,re-Reading the Op note , I note that he switched to several brokers, that is a desperate sign and if some of those actually submitted a DIP to a lender whose processes leave a hard footprint then that would indeed not only trigger a referral as well as affecting the individual directors credit score, furthermore there is a standard question on the application” Have you been declined for a mortgage” If the brokers after the initial enquiry was made and failed to register the “Yes” then other lenders would void the application because of a false declaration.
                    As a final point , if the company structure is sound, the aggregate borrowings across the entire portfolio is good then I can only assume that something has occurred with the creditof one or more directors.

                    The Hunter System is a closed system accessed only by participating lenders, the information cannot be accessed by an applicant since the information held is very very sensitive.

                    Comment


                      #11
                      Originally posted by loanarranger View Post
                      The Hunter System is a closed system accessed only by participating lenders, the information cannot be accessed by an applicant since the information held is very very sensitive.
                      They are still subject to data protection regulations and will respond to a SAR

                      Comment


                        #12
                        I accept what you are saying but knowing how the system works I am setting out an announcement issued by Hunter
                        February 2021 — Statement regarding Third party Data Subject Access Requests

                        We treat data security very seriously and due to the sensitive nature of any individual personal data that we might hold we will only communicate with you directly. This means that Data Subject Access Requests received via a third party will not be actioned as we cannot confirm the security or legitimacy of the third party company. If and when we receive any such enquiries we will endeavour to make direct contact with you to set out exactly what information we require to enable us to comply with your request. Once all the necessary information has been received we will then process and securely return our findings directly to you. We will not upload any documents into a portal controlled by a third party.

                        Comment


                          #13
                          Originally posted by Dan_Manchester View Post
                          Perhaps worth checking the "other" (secret?!) credit reference agency? If you have made multiple applications you might have raised some flags with the National Hunter database? I can't link to it here but if you search for it online you'll find it....
                          Isn't there supposed to be a difference between a soft and hard enquiry?

                          Comment


                            #14
                            Originally posted by Lawcruncher View Post

                            Isn't there supposed to be a difference between a soft and hard enquiry?
                            yes, as I understand it things like an insurance quote is a soft search but an application for credit will be a hard search.

                            Comment


                              #15
                              Much depends on which lender is being used, that is why the broker should know before a submission, fortunately the majority do a soft search on the DIP and if the basic check is positive and a full application submitted then a Hard Search follows.I might be wrong but if these several brokers did a soft search followed by a Full app and was subsequently declined then this would alert other lenders.
                              I would suggest getting both an Experian & Equifax Credit Insight to eliminate the possibility of any credit issue, if that is clean with no late payments ( anything more than a 1 on each profile) then there is more to it than we mere mortals can find out.

                              Could you advise which lenders each broker contacted?
                              ​​​​​​​

                              Comment

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