Remortgage fallen through as mortgage company thinks I am holiday letting my apartment.

[Stephane50]

The underwriters have declined to offer a remortgage as they think the property is being used as a holiday let.

I have given them no information to indicate this and there was nothing on the bank statement I gave them to indicate this either.

How would they have come to this conclusion??

[Ian-And-Anne-Marie0]

@Stephane50 

They possibly did a web search. Quite common in every aspect of commerce nowadays. Holiday Lets should be separated from Airbnb use. They are different, subject to restrictions.

We underwent some refinancing and bought another house. Because we declared we were doing Airbnb we were put on a commercial rate and it was discounted. Recently, we have been offered a couple of renewal options. The Building Society we're with offer different rates:

Commercial mortgage 5.4% (often discounted)

Holiday Let 3.9%

Buy to Let 2.64%

Home   1.8%

If you're on a 1.8% rate, they can make more money out of you by naming your mortgage differently.

When we set up ours not many companies would mortgage Airbnb properties as it was a fringe player. Now there are more companies offering Home type mortgages allowing Airbnb and competition is greater, you might get a better deal finding out which companies do this.

We've questioned our rate and expect to get it reduced. Hopefully saving nearly £3000 a year. Thats a lot of interest, just because the name of the money changes.

Our local area Building Society provides us. Often local area BS's will be more helpful if you want to ask them.

[Ian-And-Anne-Marie0]

Just as a follow up... It worked! Stating the facts behind the mortgage intention and applied use (maybe perhaps too the idea that other mortgage companies are now providing better rates to STR type properties). We made a whopping saving. One phone call, 6 minutes... I need to phone people more often!

[John2406]

@Stephane50 There has to be a reason why the underwriters declined a remortgage, apart from which, altho'you say that they "think" the property is being used as a "holiday let" - which I notice you haven't confirmed or denied on here - one dies have to query why you are saying/asking about how the underwriters' have determined what they said, on the Hosts' section of Airbnb?!

@Ian-And-Anne-Marie0 's reply hit many nails on many heads, the one most relevant, being that underwriters [as well as Mortgage lenders, and anyone else in the financial world] has access to all forms of data that is able to inform them as to who is doing what at any time.

Having said that (and forgetting for a moment that you asked on the Hosts' section) if you are saying that your property is not, and has never been a holiday let, and you are able to prove that to your Mortgage provider, then your best course of action is to contact them (in writing) to ask them the reason for the refusal, and offering to provide proof of not doing what the underwriters' claim(ed)!

I'm a bit confused as to why you mentioned Bank Statements though, if only because you sorta insinuated by what you wrote, that because the underwriters' hadn't seen those statements, they couldn't know!

Whether I misread or misconstrued what you wrote, the final decision on any loan) extension to same, is the Mortgage lender's, so if they)their underwriters' are wrong in their assessment, tell them so, as well as ask for details as to how they reached the conclusion.

Best of luck, whichever way you proceed!

[Mike-And-Jane0]

@Stephane50 

I guess they suspect its a holiday let because you have a listing on Airbnb! Its not too hard to find and I guess they are just checking to ensure you are given only the more expensive letting options.

Of course if you are mortgaging a different property I am sure you will be able to demonstrate this to them

[Ian-And-Anne-Marie0]

@Stephane50 

I could find your full name, the company you were part of to buy your 'holiday let' 5 years ago and another living address. This only using basic searches. Your mortgage company would have your name, thats pretty much all they would need.

[Gordon0]

I have a property I rent out (long-term) in Kilburn. I'm pretty sure the re-mortgage questionnaire asks what type of tenants I had, how long they'd been there, and how long the contract was for. Presumably if you had to complete this too, this would be all the info they'd need to bust you, @Stephane50?

Hope you find a way though it.