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  • FIRST POST
    • superM
    • By superM 17th Oct 16, 9:00 PM
    • 27Posts
    • 3Thanks
    superM
    BTL Mortgage Adv
    • #1
    • 17th Oct 16, 9:00 PM
    BTL Mortgage Adv 17th Oct 16 at 9:00 PM
    Hi,

    We have seen a property which is for 220k.

    My other half currently has a property rented out with rental income of £450pm. This property has no mortgage. She started to rent this property out in July 2015 and ts worth 140k.

    My income is 20k. My otherhalf is not employed. She is a carer for an disabled child.

    We would like to raise 80k from existing property + 25k from our savings and put 105k against new property. Obtain a BTL mortgage for 115k to cover new property.

    We are living with parents.

    Is this possible and which bank likely to help?

    Thanks
Page 1
    • meemawuk
    • By meemawuk 18th Oct 16, 9:57 AM
    • 22 Posts
    • 6 Thanks
    meemawuk
    • #2
    • 18th Oct 16, 9:57 AM
    • #2
    • 18th Oct 16, 9:57 AM
    I would phone London and Country, but you're basically asking for a 200k mortgage based on a single income of 20k (+rental income assuming you can evidence this over I think 2 years). It seems like quite a big ask.

    Even if you can evidence that the rental income would cover 125% of the mortgage repayments on an 80k mortgage (which I expect you'd want to have on interest only) and could find lenders where having a buy to let isn't a problem, you're still looking for a mortgage of 115k on a single income of 20k which is quite a stretch.

    Not to mention stamp duty will run you st around 8k before all the usual other fees. Have you budgeted that?
    • ACG
    • By ACG 18th Oct 16, 10:17 AM
    • 13,499 Posts
    • 6,648 Thanks
    ACG
    • #3
    • 18th Oct 16, 10:17 AM
    • #3
    • 18th Oct 16, 10:17 AM
    Not impossible but it is a tough ask.

    Most lenders need all ofthe following:
    £25k income.
    Home owner
    Over the age of 21/25

    With 2 of those missing it it reduces your pool of lenders a fair bit.

    I was also going to mention you will have to pay the increased stamp duty so its worth checking that. You will likely need a broker as I do not think it is one for the high street.
    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.
    • superM
    • By superM 18th Oct 16, 8:53 PM
    • 27 Posts
    • 3 Thanks
    superM
    • #4
    • 18th Oct 16, 8:53 PM
    • #4
    • 18th Oct 16, 8:53 PM
    Thanks for replying back.

    I have set aside money for stamp duty.

    Has anyone got experiance with Natwest?

    I have spoken with them and the income requirement they have is 20k. They assess on residential mortgage first of all but they take into account PAYE income + benefits CTC, CB, DLA and carers allowance.

    And then go ahead with rental income criteria. I am expecting £700pm rent on 115k mortgage.
    • ACG
    • By ACG 18th Oct 16, 9:37 PM
    • 13,499 Posts
    • 6,648 Thanks
    ACG
    • #5
    • 18th Oct 16, 9:37 PM
    • #5
    • 18th Oct 16, 9:37 PM
    According to Natwests lending guide, their minimum income is £25k.
    http://intermediary.natwest.com/downloads/natwest/NatWestLendingGuide.pdf - Page 7
    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.
    • superM
    • By superM 18th Oct 16, 10:32 PM
    • 27 Posts
    • 3 Thanks
    superM
    • #6
    • 18th Oct 16, 10:32 PM
    • #6
    • 18th Oct 16, 10:32 PM
    According to Natwests lending guide, their minimum income is £25k.
    http://intermediary.natwest.com/downloads/natwest/NatWestLendingGuide.pdf - Page 7
    Originally posted by ACG
    Ok the Natwest Mortgage line did say 20k to me. I rang them twice and had the same response from two diffirent people.

    From your experiance are there any lenders who accepts mortgage with 20k income. The rent will be 125% of of the mortgage repayment.

    Thanks
    • tlc678910
    • By tlc678910 20th Oct 16, 8:43 PM
    • 387 Posts
    • 759 Thanks
    tlc678910
    • #7
    • 20th Oct 16, 8:43 PM
    • #7
    • 20th Oct 16, 8:43 PM
    Hi OP,

    Just checking you noticed the advice given was flagging up additional rather than ordinary stamp duty (an extra 3% on top of ordinary stamp duty as it will be a second property).

    Why not just sell the rental and get an 80K mortgage to buy your property? Can you really keep up payments on both mortgages if your rental is vacant/not paying? I can see why a lender would be sceptical that you could do this.

    Tlc
    • superM
    • By superM 28th Oct 16, 7:43 PM
    • 27 Posts
    • 3 Thanks
    superM
    • #8
    • 28th Oct 16, 7:43 PM
    • #8
    • 28th Oct 16, 7:43 PM
    Hi OP,

    Just checking you noticed the advice given was flagging up additional rather than ordinary stamp duty (an extra 3% on top of ordinary stamp duty as it will be a second property).

    Why not just sell the rental and get an 80K mortgage to buy your property? Can you really keep up payments on both mortgages if your rental is vacant/not paying? I can see why a lender would be sceptical that you could do this.

    Tlc
    Originally posted by tlc678910
    I have the money available for the stamp duty. I will continue to live with parents - they are elderly 80 yrs and I don't want to leave them on there own.

    If the both properties are vacant I am 100% I can manage the mortgage payments. Currently I have 1kpm left end of the month.

    I have spoken with Natwest again and they told me again its 20k. When I mentioned brokers and Natwest intermediary website is showing 25k. They told that is correct - If I go through broker then income requirement is 25k. If I apply directly with Natwest then requirement is 20k.
    • amnblog
    • By amnblog 28th Oct 16, 9:44 PM
    • 8,857 Posts
    • 3,372 Thanks
    amnblog
    • #9
    • 28th Oct 16, 9:44 PM
    • #9
    • 28th Oct 16, 9:44 PM
    Nat West cap your lending at 4.99 x times income anyway - so it won't work.

    What you suggest is very tricky and you should use a broker.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
    • superM
    • By superM 28th Oct 16, 10:50 PM
    • 27 Posts
    • 3 Thanks
    superM
    Nat West cap your lending at 4.99 x times income anyway - so it won't work.

    What you suggest is very tricky and you should use a broker.
    Originally posted by amnblog
    Yes but they also take into account other income example Tax credits and DLA.

    I went through Natwest AIP on Natwest website which carries out an soft search and came AIP upto 117k.
    • Skippity
    • By Skippity 29th Oct 16, 2:36 AM
    • 1 Posts
    • 0 Thanks
    Skippity
    Skippity
    I have been looking at a house that is going to auction to purchase a buy to let property. I am getting a re-mortgage on another property I own. My mortgage adviser has told me the lender wont lend on the house that I want to purchase at auction and has valued it at worth nothing. The lender says that this is because the house doesn't have central heating, needs re-wiring, and has polystyrene tiles on some of the ceilings. That's why its going to auction, because it needs work doing to it. But I have been told because its a buy to let, even when purchasing at auction it needs to be immediately habitable to get a mortgage lender to lend on it.


    I have explained that I was going to use some of the money from the re-mortgage to do the property up and also to cover the mortgage payments while it is being done up, but they are still saying no.


    This has left me in a difficult position, as if I buy the property cash, I will struggle to do the property up. Depending on what it goes for, i might not even have enough money to pay the stamp duty and solicitors after purchase.


    Any advice would be helpful.


    Many thanks.
    From Skippity
    • amnblog
    • By amnblog 29th Oct 16, 9:06 AM
    • 8,857 Posts
    • 3,372 Thanks
    amnblog
    The auction will be full of cash buyers.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
    • Thrugelmir
    • By Thrugelmir 29th Oct 16, 10:32 AM
    • 51,296 Posts
    • 43,116 Thanks
    Thrugelmir


    Any advice would be helpful.


    Many thanks.
    From Skippity
    Originally posted by Skippity
    Find a cheaper property.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
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