Problem getting BTL mortgage

starM

Hi,

I have contacted charcol today to find out what mortgage options are available. They told me that I cannot get a BTL mortgage through them because the lender will require customer to be a home owner. Is that true?

I have seen a property for 107k - can put down 45k. I earn 21k this includes CTC/CB. Currently living with parents - I had a BTL property previously which I sold in 2007.

Which lenders provide BTL mortgages to customers with income less than 25k & not a homeowner?

Thanks
MS

poppy10_2

Normally you have to own your own home before you can get a mortgage to buy to let

herbiesjp

There are some lenders that could do a BTL for a first time buyer.

You would need to make sure you fit all the criteria, but it is worth looking into, if you have decided you want to go ahead

Also, what rental income will it give you and what property type is it i.e a high rise purpose built flat?

Conrad

No. it's not correct. FTB can get a buy to let subject to certain criteria being met. Sounds like you got through to someone fresh off a training course.

starM

herbiesjp wrote: »

There are some lenders that could do a BTL for a first time buyer.

You would need to make sure you fit all the criteria, but it is worth looking into, if you have decided you want to go ahead

Also, what rental income will it give you and what property type is it i.e a high rise purpose built flat?

Rental income would be around £550 and its terraced house. Which banks provides these mortgages.

MS

herbiesjp

There are several that could help - however as I stated before you would need to make sure you fit criteria


I'd suggest getting a second opinion from another whole of market adviser. They would get all your information and then make a recommendation on the basis of that information and on the basis of checking the lending criteria with the lender beforehand

deano72_2

why dont you look into a home owners morgage,,probly against there rules if you rent it out,but how are they to know

starM

deano72 wrote: »

why dont you look into a home owners morgage,,probly against there rules if you rent it out,but how are they to know

its risky - they might never know but if for any reason they found out my house can be repossessed.

herbiesjp

deano72 wrote: »

why dont you look into a home owners morgage,,probly against there rules if you rent it out,but how are they to know

That would be fraud - not a particularly good idea

rent_and_buy

herbiesjp wrote: »

That would be fraud - not a particularly good idea

Just get a residential mortgage, make sure your mortage provider will give you consent to let in the future, some charge a small fee for this, then just live in the property for a few months, tell the mortgage company you no longer wish to live there and would like to rent your property out.

I would try and get a good 5 year fixed deal, you will save loads on fees, i was going to go with c and g 5.29% with a massive 3.5% fee, use your head and live in the property for a few months.

You will save a lot of money as residential mortgages are a lot cheaper than btl ones, some people on here seem to think its fraud, its only fraud when you dont pay the money back.

herbiesjp

NO - it is fraud when you apply for a BTL knowing full well that you are going to let it out