Finance declined, what now?

[spludgey]

I own four IPs, three of which I have bought in the past 12 months or so. I refinanced the fourth a little while ago too. Then I applied for a mortgage that was approved and I didn't go through with.
All of this means that I've got a low credit score. Due to this St George's LMI provider has decided today that they don't want to insure me. This throws out my plan a little, as I was planning to buy two IPs with the proceeds of the refinance. The original finance clause for IP#5 ran out today, but I got it extended till the 12th.
So now the question is, should I go with St George and get an 80% LVR loan instead of a 90% one or should I try and get a 90% loan with AMP? If I was to stay with St George, it would mean that I would not be able to afford to buy IP#6 this year, though would I have enough time to refinance with AMP?

 

[Aaron_C]

How about try a lender which has a DUA with a different LMI provider?

 

[Shahin_Afarin]

Sounds like you may need a lender that has their own dua and doesn't credit score. A lender like suncorp may be a good fit HOWEVER we are only seeing about 5% of the total picture so get specific advice. Why are you with St George to begin with?

 

[Rolf Latham]

Hi Spludgey

Dont fall into the reactive trap.

Perhaps lack of appropriate planning is giving you an opportunity to do things in a different way.

Appropriate choice of lender and mortgage insurer at the right time of your acquisition cycle is critical, and hpooing across to AMP is possibly just a further complication of what you should really be doing.

sit with a decent structure broker and work through it

ta

rolf

 

[Mick C]

Choose a non credit scoring lender with DUA....lenders choose and "when" to carry out refinance/equity and with who is very important balance.

is St george your current lender ( ie for the refinance?)

 

[Marty McDonald]

I own four IPs, three of which I have bought in the past 12 months or so. I refinanced the fourth a little while ago too. Then I applied for a mortgage that was approved and I didn't go through with.
All of this means that I've got a low credit score. Due to this St George's LMI provider has decided today that they don't want to insure me. This throws out my plan a little, as I was planning to buy two IPs with the proceeds of the refinance. The original finance clause for IP#5 ran out today, but I got it extended till the 12th.
So now the question is, should I go with St George and get an 80% LVR loan instead of a 90% one or should I try and get a 90% loan with AMP? If I was to stay with St George, it would mean that I would not be able to afford to buy IP#6 this year, though would I have enough time to refinance with AMP?

Are you all crossed up with St George on all properties?

 

[MarkB]

You've got 5 mortgage brokers who have already replied to this thread, and they have all given you some ideas on how you can move through this current situation.

I'm not a MB (I am an MB, but not the sort of MB you want).

So I'm going to suggest you pause - even if only for a little bit.

Yes, if you look hard enough and speak to the right people and knock on a few doors and don't accept no for an answer - there is a high probability that you will get the finance you want.

But maybe the universe (in this case St George) is telling you to wait a while - before then going on to purchase your next IP.

Yeah, this forum is full of people who pushed themselves, people who, as the saying goes, "bit off more than they could chew, and chewed like hell"...

But there are also those who tried to do a little bit too much too soon, and, for whom it all turned pear shaped.

I'm just reminding you of that.

 

[spludgey]

Thanks guys, the reason I've gone with St George is that I've got three mortgages with them already and my mortgage broker thought that they would approve one more before moving to another lender.
I'm not sure whether I mentioned the other loan to him that I didn't follow through with, so this may have been a failure on my part.

I'm thinking of just taking an 80% LVR loan with St George so that this is all wrapped up. I can always refinance later on if need be.
This would also free up some money that I could use for some other things that would make things a little easier.
Not too sure about the universe telling me something, but the timing isn't actually that bad.

 

[mflying]

your mortgage broker THOUGHT??

My MB doesn't apply loans for me based on what he thinks.

He checks particular lender's policies, confirms with them, request for exception (If required) before even filling out application form.

That is why, i am never worried about finance part of the deal!

May be time to speak one of the broker, who replied on your post!

 

[Rolf Latham]

Thanks guys, the reason I've gone with St George is that I've got three mortgages with them already and my mortgage broker thought that they would approve one more before moving to another lender.

I call that sort of thing "concentration" risk.

if you think its bad now, wait till you need to pull equity when these things are worth a bit more .

ta
rolf

 

[Marty McDonald]

Yeah sounds like you should take a title off them.

 

[Mick C]

I'm thinking of just taking an 80% LVR loan with St George so that this is all wrapped up.

You must really love St George ....don't make them tell YOU want to do; your business is just as good elsewhere. As an investor you want to maximise your LMI and 1-2 bank first BEFORE going down the 80% LVR route.

ONce you become too rent reliant the LMI gets scared, very scared.