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looking for 'Buy to let' mortgage

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Hi,

My partner and I are looking for a 'Buy to let' joint mortgage and would appreciate any good advice/suggestions.

I am self employed with over 5 years of certified accounts with earning on average of 20k per year. My partner is employed but with a lower salary 12k per year.

I have been told that 'buy to let' lenders are more interested in the rent per month covering 110% - 130% of the mortgage repayments rather than our actual salaries.

We both have good credit scores.

Amount to borrow: 125,000.
Length 25 years
Deposit 15% = 18.750
Projected rental income: 650. pm (this is equal to 130% based on 4.89% interest rate.

I am 47 years old and my partner is 42 years old - is this a problem for a buy to let' mortgage ?

Just over 12 years ago in June 1994, my flat that I was buying that I lived in was repossesed by Cheltenham & Gloucester - will that be a problem ? Should I declare it ? I've been told that after 12 years it get's wiped off the systems ?

We don't want to limit our choices by declaring any negative info if they don't need to know.

In anticiaption.

Chris
you know when you're getting older - the wife says, "let's go upstairs and make love" and you reply, "I can't do both" !!

Comments

  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Hello Chris

    Your age is no object on a buy to let mortgage, but you will have to declare you had a property reposessed as it can be traced by the lender. This will have a minimal impact on your buy to let application now as it was such a long time ago.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • PoorDave
    PoorDave Posts: 952 Forumite
    500 Posts
    I know this doesn't help you out, but where are you getting a rate of 4.89%?*curious*
    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    it might not be the rate of the mortgage, but the rate the lender uses to calculate rental income, i.e. 130% of the mortgage IF the rate was 4.98% rather perhaps than what is more likely the current rate, around 5.40%
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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