What are the reasons to-let investors get their mortgage rejected !

 

When you have made up your mind about a suitable investment property, you never want that the application should get rejected for that. Making your mortgage less stressful requires you to take care of several things. Buying a to-let mortgage in Essex is not an easy task. It involves various issues that you need to deal with. Here are some of the reasons why your mortgage can be rejected. 

The value of the property is down 

It is one of the common reasons that your mortgage can be rejected. When the market has been rising quickly and competition increases it results in higher prices. When the property is downvalued, the lender will either make a lower loan offer or reject the application. 

Your credit score 

If you have a poor mortgage history, you are heading towards getting your to-let mortgage rejected. Because of these issues, numerous applicants dead in their tracks each year. When you are getting involved in this type of activity, you should always first consult a mortgage broker. They will solve your credit problem and will make sure that your mortgage request does not get rejected. 

Age issues 

Age is one of the reasons that can result in a rejected application. The minimum age for proper investment in the mortgage is 18 years, and even in some cases, it can be 25. 

Maximum number of buy-to-let mortgages

Many lenders have a limit for the maximum amount of borrowing. In any case, if a person has to take several mortgages, the lenders will reject the application if they feel you are too highly exposed. 

Paperwork with missing documents and information 

Several documents are needed during the time of to-let mortgages. A large number of mortgage applications get a rejection because of the incomplete or incorrect information given to lenders. Make sure that the application you have written is filled with correct details and nothing gets left. You need to understand every section of the mortgage application. 

Portfolio landlord 

If you are holding four or more properties, you will be known as a 'portfolio landlord'. This term could be new to you means that the total borrowings across all your properties must be a maximum of 75% LTV. You need to avoid it as it can affect your borrowing. If you have just purchased 85% mortgages, you need to refuse the fourth mortgage. 

Ensure that you don't get caught with any points and get your mortgage rejected. You should always consult an experienced specialist for the mortgage application they will help you with documentation and other issues to solve. They have proper knowledge about the procedure required for that, and they will ensure that your buy-to-let mortgage in Essex does not get rejected. One of the popular websites which provide consultancy and services for mortgages is Sterling Capital Group LTD. You can visit their site to get broader details.