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Buy to Let Help

I have just inherited a property from my late father which needs some work doing to it.

What I would like to do is get a buy to let mortgage on property and do it up to rent.

My big problem is I currently have a large amount of debt (which I would pay off with mortgage) which has resulted in me having a bad credit rating.

Is there any mortgage company that would help me?
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Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    What credit problems do you have?

    What is the property value?
    How much of a mortgage do you want?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • I have about £40000 (have been very stupid in past!!!!). I do not have any defaults or CCJ's.

    The property is worth £100000 - in current state but with a bit of work will be worth £140000,

    I would like a mortgage of £75000, this will enable me to do property up and pay off debts
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    So if you have no defaults or CCJ'S, what do you mean by the "bad credit rating"?
  • I've looked on experian & it said due to amount of debt my credit score is low
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    As long as the rental income covers the mortgage payment, then your income/debts will not be relevant for a BTL

    Maximum LTV will be 75% - but whether or not you can get the maximum 75% mortgage will depend on the rental income you can expect to get

    Different lenders have different ways of getting the rental calculation they require
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • I've looked at rental income & I would expect to get a minimum of £550 per month.
  • Just another question - where would be best place to go for mortgage - our mortgage provider on out own property or mortgage advisor?
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    A mortgage adviser

    Your current lender may or may not offer BTLs - and if they do, they will offer offer their own products which may not be the best for you.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    herbiesjp wrote: »
    As long as the rental income covers the mortgage payment, then your income/debts will not be relevant for a BTL

    Maximum LTV will be 75% - but whether or not you can get the maximum 75% mortgage will depend on the rental income you can expect to get

    Different lenders have different ways of getting the rental calculation they require


    Pre-recession income may not have been relevant, however now income has become more relevant for example C&G you must have a minimum income before tax (excluding rental income) of 35k, BM Solutions a minimum income of £25,000 per annum is required.

    Some lenders will not lend to first time landlords, with this maze an advisor would help.
  • Will they add mine & my partner's earnings together?
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