Husband refused BTL Mortgage

Woofywoof

Hi, happy new year everyone. I'm looking for some advice regarding my buying a property to rent out. My home is under a mortgage under my name only, my husband rang the bank today to see if he could get a BTL mortgage on his own but the chap said that they dont offer BTL mortgages to anyone who doesn't have a residential mortgage??? This seems odd but to get round this can my husband just get a regular mortgage for the investment property and then phone the bank to say he will be renting out the property?
Any advice would be much appreciated.

chappers

That may be the case with your bank, try speaking to a broker. I am in exactly the same situation as you my wife has our residential mortgage, but I have 2 BTL in my name.

Woofywoof

Oh dear just realised that my husband won't qualify for most BTL mortagages as he earns just under 25K. This probably only leaves me with the other option of getting a residential mortgage and then informing the bank that i want to rent the property out after the morgage has gone through. Has anyone done this? If so what fees are incurred and do you have to change your mortgage deal? Any advice would be much appreciated.

Milliewilly

I didn't realise there was a minimum earnings requirement for a BTL Mortgage??

Thrugelmir

Milliewilly wrote: »

I didn't realise there was a minimum earnings requirement for a BTL Mortgage??

May have something to do with having adequate income to cover mortgage repayments during void rental periods.

Thrugelmir

Woofywoof wrote: »

Oh dear just realised that my husband won't qualify for most BTL mortagages as he earns just under 25K. This probably only leaves me with the other option of getting a residential mortgage and then informing the bank that i want to rent the property out after the morgage has gone through. Has anyone done this? If so what fees are incurred and do you have to change your mortgage deal? Any advice would be much appreciated.

You have to own the property for a minmum of 6 months before majority of lenders will even consider this.

Dylanwing

I thought that BTL was a proper business, with reserves needed to cover repairs etc., and to cover periods when rent is not coming in. I think that rather a lot of amateurs 'Get Rich Quick' merchants have got their fingers burnt, so I can understand why Banks are not too keen to lend.

poppysarah

Why don't you have a residential mortgage? Do you already own your own home?

If not, why BTL one rather than just buy to live in?

chappers

poppysarah wrote: »

Why don't you have a residential mortgage? Do you already own your own home?

If not, why BTL one rather than just buy to live in?

All explained in the original post.

As I said speak to a broker not all BTL will want a minimum income but a combination of income, LTV and yield on rent.

you could potentialy get permission to let on your current property and purchase anew residential property, if your current lender would allow.

Yorkie1

Woofywoof wrote: »

This probably only leaves me with the other option of getting a residential mortgage and then informing the bank that i want to rent the property out after the morgage has gone through.

Forgive me if I've got the wrong end of the stick, but if the property is always intended to be BTL, and you don't intend to reside in it as your permanent home / don't do so, then the experts on the landlordzone forum generally advise that this would be a fraudulent mortgage application and thus potentially criminal.

Bermuda_John

some ask for a set incoem these days but most just require the 125% interest cover. ie the rental income must be125% of an interest only mortgage, then there is also the Loan to Value that must be 75%.

Try Birmingham Midshires.