Potential FTB with a few questions.

magicman316

Hi there,
I am looking to invest in a property as the prices are down at the moment. I am totally new to mortgages. I'm 23 years old and have been working for the past 3 years. I have 1 credit card which I pay off in full each month and no debts & I think my credit score is Good as I've never had to pay interest on anything other than the ocassional overdraft on my current account/Debit account.
I have 10k in savings and can raise some more capital.
I spoke to a few lenders and some told me they do not offer Buy to Let mortgages anymore - If I was to get a FTB mortgage and let the property out, would this be against the banks terms and conditions?
I have an interview with the bank manager of Cheltenham and Gloucester (mortgage advisor cannot make it on the day) next week and have been asked to bring ID and proof of income with me. When they ask about income, are they concerned with just employment income or other sources too? As I'm registered blind I also receive Disability LIving Allowance and tax credits; would this be included when I tell them my annual income before tax?
Any advice/recommendations you can provide will be most appreciated.
Thank you.

_Andy_

If you are buying a property to rent out, you need a buy to let mortgage.
Regarding the income, it's not of huge relevance if you're doing a BTL (I assume you aren't intending on making a fraudulent application by telling them it's residential - not a good plan), the rental income is.
That said, unless you're looking at very very cheap properties, doesn't sound like you have enough money at the moment for a deposit etc.

magicman316

I don't plan to make a fraudulent application. I just needed the clarification as having spoken to the lady at Nationwide she led me to believe that it may be possible to still rent the property out even if its not a BTL after giving me the bad news that they stopped giving BTL mortgages.

I know that Cheltenham. do have BTLs but any idea how much of a deposit you require for one? I'm just looking into it and I do have access to more funds if needed.

I am looking for a cheap place, something less than 120k. Its interesting that you say that income isnt a big factor in BTL as I suppose they realise you will be utilising monthly income to fund the repayments. Just getting to grips with it as have never looked into them before.

_Andy_

http://www.cheltglos.co.uk/mortgages/buy-to-let/

magicman316

On their site it says: Your sole or joint income (excluding rental income) before tax must be at least £35,000.

I don't quite earn that much, does this mean they can't help me? Is this condition common amongst other BTL mortgage lenders?

_Andy_

Yes it does mean they won't be able to help.
Your best bet would be to speak to a decent whole of market broker.

magicman316

Thanks for the info.
Is that something I can find online, are those like mortgage specialists?

Also, I haven't found a property yet. There are lots I've seen that am interested in but haven't made any contact as I thought it would be better to first find out from the market whether they can back me for a mortgage.

Once the bank give me the OK, do they give you say a 6 month period in which to take up the mortgage offer while you find an appropriate property?