credit check on buy to let

paulsm

Hi guys , I am looking at helping a mate out of a tight spot , it would be ideal if he could release some capital in his house. A buy to let mortgage could do that but he is worried he wouldnt get one due to his bad credit. As I understand most buy to lets dont take into account only the rental income against the mortgage payments. Can anyone shed some light on this.:money:

regularsaver1

so where is he going to live?

AndrewSmith

He can only take a buy to let mortgage if :

a) He will not be living in the property
b) It is not occupied by his close family or relatives
c) He is letting the property as one single residential unit on an Assured Shorthold Tennancy agreement.
d) The rental income is approx 130% of the interest only mortgage payments (however this does vary slightly from lender to lender).

Buy to let lenders take the rental income into account, some lenders want to see evidence of employment or additional income, some don't.

Whatever type of mortgage he takes he will always be subject to a credit check and underwriting.

What is the status of the property? Is it his main home? What type of credit problems are we looking at to make credit checking a worry?

What does he want to raise the capital for and how much?

What does he earn and how?

WHat is the mortgage amount, current lender, and value of the property?

Any existing other loans, debts etc

Post more details and guidance will follow

Andy