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    • littlevic
    • By littlevic 4th Jun 17, 8:49 PM
    • 4Posts
    • 1Thanks
    littlevic
    Can't get buy to let mortgage. Help!
    • #1
    • 4th Jun 17, 8:49 PM
    Can't get buy to let mortgage. Help! 4th Jun 17 at 8:49 PM
    In October 2016 I began working in Spain. I got permission to let my UK house from my mortgage company for 1 year until 1st October 2017. The house is let through a letting agent.
    The mortgage company told me that after a year I would need to change my mortgage to a buy to let if I wanted to continue renting it out.
    Well, I do want to stay abroad for another year, My mortgage company doesn't offer buy to let mortgages and the mortgages I've looked into all require a salary of over £25000 - which I earn nothing near! All the mortgage companies I've tried won't touch me because I live abroad and earn less that £1500 per year. What are my options other than sell my house? It's a great investment and I've a great deal of equity tied up in it. Any advice please??!!
Page 1
    • G_M
    • By G_M 4th Jun 17, 9:39 PM
    • 41,425 Posts
    • 47,789 Thanks
    G_M
    • #2
    • 4th Jun 17, 9:39 PM
    • #2
    • 4th Jun 17, 9:39 PM
    On that income, I'm surprised you are not selling the house just so you can eat......
    • flashg67
    • By flashg67 4th Jun 17, 10:10 PM
    • 2,217 Posts
    • 1,464 Thanks
    flashg67
    • #3
    • 4th Jun 17, 10:10 PM
    • #3
    • 4th Jun 17, 10:10 PM
    I've not come across a BTL lender who will consider earnings less than 25k though you could try a specialist broker
    • streetlovin
    • By streetlovin 4th Jun 17, 10:34 PM
    • 75 Posts
    • 31 Thanks
    streetlovin
    • #4
    • 4th Jun 17, 10:34 PM
    • #4
    • 4th Jun 17, 10:34 PM
    I know this must be a very naive and stupid question for people who already know, but how can you earn less than £1,500 per year?

    Is that because lenders only take into account the money you earn in pound sterling and not the money you earn from working abroad due to different currency? Or they do, but the money you earn from working abroad equals to less than £1,500 a year after currency conversion and you have been using the money from renting out your property you pay the mortgage in the past year?
    • Crashy Time
    • By Crashy Time 4th Jun 17, 10:36 PM
    • 5,006 Posts
    • 2,157 Thanks
    Crashy Time
    • #5
    • 4th Jun 17, 10:36 PM
    • #5
    • 4th Jun 17, 10:36 PM
    http://www.telegraph.co.uk/personal-banking/mortgages/mortgage-prisoner-explosion-new-generation-risk-crippling-rates/
    • Thrugelmir
    • By Thrugelmir 4th Jun 17, 11:00 PM
    • 55,530 Posts
    • 48,880 Thanks
    Thrugelmir
    • #6
    • 4th Jun 17, 11:00 PM
    • #6
    • 4th Jun 17, 11:00 PM
    Not a good article.

    In October 2007 they took out a “self certification” mortgage on a three-bedroom semi with lender The Mortgage Business, planning to rent the house out while they waited for prices to rise – at which point they would sell for a profit.

    "as well as make mortgage payments on the homes they live in".


    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
    • Crashy Time
    • By Crashy Time 6th Jun 17, 1:04 PM
    • 5,006 Posts
    • 2,157 Thanks
    Crashy Time
    • #7
    • 6th Jun 17, 1:04 PM
    • #7
    • 6th Jun 17, 1:04 PM
    https://www.theguardian.com/money/2017/jun/06/uk-rents-fall-london-brexit#comment-99808485
    • Grenage
    • By Grenage 6th Jun 17, 1:25 PM
    • 1,252 Posts
    • 1,200 Thanks
    Grenage
    • #8
    • 6th Jun 17, 1:25 PM
    • #8
    • 6th Jun 17, 1:25 PM
    http://www.telegraph.co.uk/news/2017/06/01/watch7-foot-alligator-takes-dip-family-pool/
    • Crashy Time
    • By Crashy Time 6th Jun 17, 5:03 PM
    • 5,006 Posts
    • 2,157 Thanks
    Crashy Time
    • #9
    • 6th Jun 17, 5:03 PM
    • #9
    • 6th Jun 17, 5:03 PM
    I know this must be a very naive and stupid question for people who already know, but how can you earn less than £1,500 per year?

    Is that because lenders only take into account the money you earn in pound sterling and not the money you earn from working abroad due to different currency? Or they do, but the money you earn from working abroad equals to less than £1,500 a year after currency conversion and you have been using the money from renting out your property you pay the mortgage in the past year?
    Originally posted by streetlovin

    Recently bought a BTL?
    • Crashy Time
    • By Crashy Time 7th Jun 17, 3:18 PM
    • 5,006 Posts
    • 2,157 Thanks
    Crashy Time
    Spain and bad property bets feature strongly in this story, more than alligators getting dipped as well....


    http://www.bbc.co.uk/news/business-40184347
    • bob bank spanker
    • By bob bank spanker 7th Jun 17, 3:23 PM
    • 519 Posts
    • 991 Thanks
    bob bank spanker
    Spain and bad property bets feature strongly in this story, more than alligators getting dipped as well....


    http://www.bbc.co.uk/news/business-40184347
    Originally posted by Crashy Time
    Who are you voting for?
    • asus1987
    • By asus1987 7th Jun 17, 3:28 PM
    • 31 Posts
    • 11 Thanks
    asus1987
    my own short story,

    purchased a flat on residential, after 6 months applied for consent to let - granted
    went abroad for a bit, Came back, Living with partner in her flat,

    My consent to let technically expired 2 years ago, The mortgage reverted to the standard rate,
    im still paying it, the tennant is still in there and the mortgage company have never said anything to this date,

    could always chance it and see if anyone notices,
    • Crashy Time
    • By Crashy Time 7th Jun 17, 3:33 PM
    • 5,006 Posts
    • 2,157 Thanks
    Crashy Time
    my own short story,

    purchased a flat on residential, after 6 months applied for consent to let - granted
    went abroad for a bit, Came back, Living with partner in her flat,

    My consent to let technically expired 2 years ago, The mortgage reverted to the standard rate,
    im still paying it, the tennant is still in there and the mortgage company have never said anything to this date,

    could always chance it and see if anyone notices,
    Originally posted by asus1987

    I think the change now is that HMRC are actively trying to find out who is letting property (not really difficult to do?) and obviously they will start with larger portfolio landlords, but is it worth the risk and hassle?
    • asus1987
    • By asus1987 7th Jun 17, 4:04 PM
    • 31 Posts
    • 11 Thanks
    asus1987
    for me yes,

    same trap as the OP , i dont earn 25k, , would need a specialist broker of some sorts, i see no need to poke the bear

    i pay the mortgage, i collect the rent, I do pay tax ( so im sure already hmrc know i let the property- since i pay the tax due)
    • Cakeguts
    • By Cakeguts 7th Jun 17, 11:29 PM
    • 2,853 Posts
    • 3,906 Thanks
    Cakeguts
    In October 2016 I began working in Spain. I got permission to let my UK house from my mortgage company for 1 year until 1st October 2017. The house is let through a letting agent.
    The mortgage company told me that after a year I would need to change my mortgage to a buy to let if I wanted to continue renting it out.
    Well, I do want to stay abroad for another year, My mortgage company doesn't offer buy to let mortgages and the mortgages I've looked into all require a salary of over £25000 - which I earn nothing near! All the mortgage companies I've tried won't touch me because I live abroad and earn less that £1500 per year. What are my options other than sell my house? It's a great investment and I've a great deal of equity tied up in it. Any advice please??!!
    Originally posted by littlevic
    Are you including the rent in the I assume £15000 per year? It isn't really £1500 is it? Sell the house. You will have a terrible problem if your tenant stops paying rent. It is better to sell the house than have it repossessed.
    • Crashy Time
    • By Crashy Time 8th Jun 17, 1:18 AM
    • 5,006 Posts
    • 2,157 Thanks
    Crashy Time
    Are you including the rent in the I assume £15000 per year? It isn't really £1500 is it? Sell the house. You will have a terrible problem if your tenant stops paying rent. It is better to sell the house than have it repossessed.
    Originally posted by Cakeguts

    Most tenants just don`t stop paying rent though?
    • martindow
    • By martindow 8th Jun 17, 10:56 AM
    • 7,193 Posts
    • 4,010 Thanks
    martindow
    Most tenants just don`t stop paying rent though?
    Originally posted by Crashy Time
    True, but some do. If the LL has little or no resources in cash, a T not paying rent or a void could cause major problems as Cakeguts said.
    • Crashy Time
    • By Crashy Time 13th Jun 17, 1:19 PM
    • 5,006 Posts
    • 2,157 Thanks
    Crashy Time
    True, but some do. If the LL has little or no resources in cash, a T not paying rent or a void could cause major problems as Cakeguts said.
    Originally posted by martindow

    Dropping the rent should avoid voids so to speak, and realistically how long could a non-paying tenant cling on in a property?
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