Buy to Let Mortgages

Sarny

Hi,

Do Buy to Let mortgages have a minimum salary you need to earn before they are offered to you, regardless of it being BTL and you putting in 25%?

I have heard recently that some companies require a minimum salary?

Help?

_Andy_

Some do yes.
What is your salary, how much are you wanting to borrow?

Sarny

some?

How is salary linked with borrowing - i have a residential mortgage already, it would be under 100k? more like 70-90k max

_Andy_

Yes and what is your salary?

mlz1413

Yes your salary can be taken into consideration, I assume is so the lender knows if you can afford the repayments regardless of the property having tenants.

Sweetcaz_2

Some will expect to see a minimum salary (latest one I saw was a min of £35K), others do not need to see income just that the rental income stacks up.

You would need to check the lenders criteria.

Sarny

i doubt many people could afford two mortgages thats why you put in a hefty deposit and stack the rental.

i earn in the 20's, 35k seems awfully high as id imagine you would have a larger mortage with a larger salary, generally...

_Andy_

Best bet at the moment would be to speak to a decent whole of market broker who can find a suitable lender.

mlz1413

You don't put in a hefty deposit because you can't afford two mortgages.

Deposits mean the lender is not taking all the risk and shows commitment from the borrow that they have saved the deposit and also keeps their commitment.

You would be very lucky to have a rental with 100% occupancy.

Sweetcaz_2

_Andy_ wrote: »

Best bet at the moment would be to speak to a decent whole of market broker who can find a suitable lender.

I agree, as I am an IFA :rotfl:!

Due to the tightening of lending criterias on all mortgages over the last 18+months the lenders who do still do BTL mortgages can afford to be picky sadly and impose such salary restictions and indeed have also been known to charge some hefty arrangement fees too!!

There are some that do not look at salary though so shop around to suit your circumstances.

Sarny

Yeah im not saying you cant afford two mortgages, id bank on only 10months occupancy, then again, i could lose my 9-5 but i have savings, i would never expose myself, but if im not even going to get a mortgage it seems a bit harsh to be honest, if i put in 25% thats a *lot* ontop of there 2.5% arrangement fees etc..but thats what savings are for and hopefully running a tight business.