Buy to Let Mortgage needed but I dont have a job!! Help.

Sunshine12

Ive been unemployed for around 6 months and currently have my mortgage with Halifax. I want to rent my flat out so have contacted them for consent to lease. The product they have offered me is around 5.1% above base tracker with a £600 arrangement fee.

As Im not working Id prefer to look around and if required, change lenders however Im unsure given that I dont work whether new lenders will entertain this? I know under normal circumstances they wouldnt but unsure if this is the case with buy to let mortgages. I think I can get a better rate and a lower arrangement fee elsewhere but before I apply would rather know if its going to be a waste of time. Any ideas?

(Not sure if relevant but my mortgage is around £32,000 which equates to around a 20% LTV)

inca_2

I can't speak for all lenders but many have requirements of a minimum income for buy to lets. You'd be best speaking to a broker who can look at the criteria of a wider range of mortgage lender's criteria.

benjaminM

Sunshine12 wrote: »

Ive been unemployed for around 6 months and currently have my mortgage with Halifax. I want to rent my flat out so have contacted them for consent to lease. The product they have offered me is around 5.1% above base tracker with a £600 arrangement fee.

As Im not working Id prefer to look around and if required, change lenders however Im unsure given that I dont work whether new lenders will entertain this? I know under normal circumstances they wouldnt but unsure if this is the case with buy to let mortgages. I think I can get a better rate and a lower arrangement fee elsewhere but before I apply would rather know if its going to be a waste of time. Any ideas?

(Not sure if relevant but my mortgage is around £32,000 which equates to around a 20% LTV)

There could be a way around your situation. Some lenders dont want to see any evidence of income for BTL. Being unemployed is your problem but as you own the property you could quite ligitimatley say that you are landlord.

Off the top of my head I think Northern Rock dont ask for any income verification and possibly the mortgage works, but dont quote me on that.

Speak to a mortgage advisor, they might be able to help you. One good thing, at least you have got something to fall back on with Halifax if all else fails.

herbiesjp

I dont think it so much working a way around the situation.

The more important questions is how are you going to pay the mortgage 1) if you stay in the property 2) if you are unable to let out?

benjaminM

herbiesjp wrote: »

I dont think it so much working a way around the situation.

The more important questions is how are you going to pay the mortgage 1) if you stay in the property 2) if you are unable to let out?

Good point!!

Sunshine12

herbiesjp wrote: »

I dont think it so much working a way around the situation.

The more important questions is how are you going to pay the mortgage 1) if you stay in the property 2) if you are unable to let out?

Hi. Same way as I do now TBH. I currently live in it and have been paying mortgage as normal since I lost my job in November. I have savings. Ive been advised that due to the location it should let out within a couple of weeks. I fully understand that banks need to know that I wont default, thats why I wasnt sure if I would have any chance of getting funding elsewhere.

Thanks all for your comments.

Pincher

Doesn't the government pay the mortgage interest if you are unemployed? You still need somewhere to live, and you will lose lots of state benefits by moving out. Council tax is paid by Housing benefit, etc.

Sunshine12

Pincher wrote: »

Doesn't the government pay the mortgage interest if you are unemployed? You still need somewhere to live, and you will lose lots of state benefits by moving out. Council tax is paid by Housing benefit, etc.

Hi

Thanks for reponse. TBH, Im not bothered about getting benefits. I currently get £20 per week JSA and have applied for mortgage interest to be paid (they dont pay this whilst you are on contributions based - Ive just recently switched to income based) but Id rather rent my flat out. Council tax wouldnt be applicable if I rent as when its unoccupied I would get exemption in any case and when there are tenants in it they would be paying it.

MPlant

Hi Sunshine12

What kind of mortgage product do you currently have with the Halifax? Or are you on a standard variable rate?

I have a mortgage with Halifax and am tied in for the next 3 years; I needed to rent out my place and realised this would be difficult in terms of getting CTL. Eventually they gave me CTL about two weeks ago after I put forward a case that my situation was 'out of necessity'. However my LTV is over 75%. I've posted about this in another post.

Are your circumstances different because you have such a low LTV and therefore they want to move you onto a BTL product? Can you not put a case forward that this is out of necessity and for a short period of time only?

Good luck with everything.

Sunshine12

MPlant wrote: »

Hi Sunshine12

What kind of mortgage product do you currently have with the Halifax? Or are you on a standard variable rate?

I have a mortgage with Halifax and am tied in for the next 3 years; I needed to rent out my place and realised this would be difficult in terms of getting CTL. Eventually they gave me CTL about two weeks ago after I put forward a case that my situation was 'out of necessity'. However my LTV is over 75%. I've posted about this in another post.

Are your circumstances different because you have such a low LTV and therefore they want to move you onto a BTL product? Can you not put a case forward that this is out of necessity and for a short period of time only?

Good luck with everything.

Hi, Im on a variable and they have said that whilst they are happy to give me consent they dont give CTL on the variable rate. I might contact them again and tell them again that its out of necessity and see what they say as at the moment they are about to charge me £600 and an extra 2.5% for the priviledge!! Thanks for posting. Really appreciate it.