Who will give me a mortgage?

bobbyjack

I am after a buy to let mortgage for a house I viewed yesterday. I have a 25% deposit. I am a student and therefore do not have any income at present. But I was under the impression that the level of rent to be charged would be taken into account. The mortgage adviser at Halifax refused me point blank saying I didn't earn 25k a year. My mother could act as garantor. Anyone out there likely to give me a mortgage? Thanks

luckyfool

If your mother earns 25k a year you could go joint on the mortgage with her (if she is happy to) with Halifax/Bank of Scotland/BM Solutions. The solicitor could draw up the legal paperwork so ownership is split 99-1 so she only has a token interest in the property, making you the defacto owner. They won't look at it on a guarantor basis as BTL's are not typically done in this way.

Most other btl lenders offering 75% just now will not lend to first time landlords, especially ones without an income. You might want to speak to a broker who can look into your full circumstances and give advice.

bobbyjack

Thanks for that, luckyfool. My mother already has a mortgage on her own house, does this make a difference? I had never thought about 99-1 split. Finding all this mortgage business very confusing. Thanks again.

viktory

bobbyjack wrote: »

Finding all this mortgage business very confusing. Thanks again.

That's a terryfying statement! Do some research before you commit to the biggest debt of your life.

bobbyjack

Viktory, I understand what you are saying but I have done my research, I had a mortgage offer in principle a while ago (over a year ago), but now my situation has changed slightly and I am finding it difficult to get another one. I had never anticipated involving my parents.

luckyfool

If it's a buy to let then it's not a problem her having a residential mortgage already. In England and Wales the ownership is either done as a joint tenancy (in which case it is effectively 50/50 and if one of you passes away the whole property automatically passes to the other). Alternatively the solicitor can set it up as tenancy in common with an ownership split set out as I mentioned previously.