Now no bank will lend me money

dbcooper_2

Hi all moneysavers,

I've rang several banks enquiring about obtaining a buy to let mortgage. They all say that because of the "Credit Crunch" they need to see proof of annual income of 25,000+ p.a. I don't have anywhere near this income. What I do have however, is 100% equity in a house worth approx £140,000, and savings worth in excess of £100,000. I have no debt, and have rental income from the house of approx £5,000 p.a. (the house is in England, I now live in Italy.)

I have spoken to a commercial lender but their minimum lending amount is £1 million. I am looking to borrow £150,000-£250,000.

Does anyone know how I might borrow this amount?

I know my case is unusual, but hopefully not unique. Looking forward to all constructive replies. Thanks. dbcooper

unite79

DBcooper, you are right your situation is unusual, but not unique.

You need to speak to a Broker, who can help you source a number of lenders that have no minimum income and will lend to someone who does not live in the UK - Yough but by no means impossible, I can think of 5 lenders that would do this, no problem.

_Andy_

Can I just clarify - are you wanting to borrow £150k on a property worth £140k? Or am I missing something?

dbcooper_2

Thanks for the prompt reply. I'm looking to make money on the capital appreciation of the house (or houses) I'm looking to buy. I need this to help fund my lifestyle and reduce my dependence on using the stockmarket to (try) and make money.

dbcooper_2

Yes Andy that's right. I was thinking of borrowing at least that much. I was thinking of selling the house and using the money as a deposit on the new house(s)

tinkerbell84

unite79 wrote: »

DBcooper, you are right your situation is unusual, but not unique.

You need to speak to a Broker, who can help you source a number of lenders that have no minimum income and will lend to someone who does not live in the UK - Yough but by no means impossible, I can think of 5 lenders that would do this, no problem.

are you a broker? if so, you need to have the approved signature

_Andy_

Well if you want to borrow £150k against a property worth £140k that won't happen.

unite79

Tinkerbell84 - Sorry - Where does it state a broker needs to put a signature!

dbcooper, I assumed you were going to use the equity/savings as deposit's to fund further purchases to gain the capital appreciation - Dont understand the point of selling 1 property that is rented out and buying another to rent out!

Toughluck

Is this some sort of wind up?

If it isn't, then some lenders didn't have a minimum annual salary. Now you have to unfortunately. I don't know of a lender currently that will do this if you are not earning a certain amount. Sorry.

herbiesjp

If you want to buy another house, you could do the following:

1) Raise funds from your unencumbered property in the UK and get a BTL morgage on that one and a BTL mortgage on the new property

2) Raise funds from the unencumbered property and use some of your savings, so the new property is owned outright


This is not a difficult scenario and there are several lenders that may be flexible enough to agree this for you

herbiesjp

unite79 wrote: »

Tinkerbell84 - Sorry - Where does it state a broker needs to put a signature!

dbcooper, I assumed you were going to use the equity/savings as deposit's to fund further purchases to gain the capital appreciation - Dont understand the point of selling 1 property that is rented out and buying another to rent out!

It states it here