Another can I get a mortgage thread?

Starscream-08

Hi Guys,

Basically im in a very difficult position financially, I lost my job almost 3 years ago due to depression, grieving finally over the death of my father, and have been unable to find any sort of employment since so obviously am in a damn mess with my finances, my credit score is very weak though I only owe a total of £5,000.00.

Thing is ive now been given an oppurtunity in regards to getting on the property ladder, Ive been garunteed a house worth 140K if I can raise a mortgage of 65K to pay my mothers equity, its mine tommorow if I can do it! Now obviously being stuck on benefits I cant afford to live there So it would be on buy to let... Its a 3 bed property in a good central location, pleanty of people renting in the same street so I dont forsee any problems there...

Question is would a bank be prepared to help with a buy to let mortgage... £70K - £75K would be enough to not only get it but get me debt free and carry out the multitude of cosmetic work that needs doing etc

Do you guys think this is possible?

Thrugelmir

In short the answer is no. Keep looking for a job to get you a stable income.

Starscream-08

Thrugelmir wrote: »

In short the answer is no. Keep looking for a job to get you a stable income.

Its not likely to happen in time, having little to no understanding of how the banks operate I was hoping that they would see the possibility of doubling there money as an attractive option its a pitty as not only would I be saving my family home id be getting rid of my debt problems. the property currently has a rental value of £450 per month

Thrugelmir

BTL investment became the fad when some banks loosened their purse strings and offered extremely low rates of interest on commercial mortgages. Time has moved on and new entrants to the letting game will find it more difficult to make it profitable.

Banks make their money by lending over extended periods of time. Providing the underlying value of the security, in this case the house, covers the borrowing then thats all matters to them.

Good luck with your job search. Something will turn up if you keep looking.

Starscream-08

Thrugelmir wrote: »

BTL investment became the fad when some banks loosened their purse strings and offered extremely low rates of interest on commercial mortgages. Time has moved on and new entrants to the letting game will find it more difficult to make it profitable.

Banks make their money by lending over extended periods of time. Providing the underlying value of the security, in this case the house, covers the borrowing then thats all matters to them.

Good luck with your job search. Something will turn up if you keep looking.

Sorry if I am being a little slow on the uptake but are you saying with these circumstances the only thing stopping me is the fact I have no job?

jockosjungle

I would have thought so, it is a good loan to value rate you are looking for. A bank would worry how you are going to pay the mortgage whilst you are looking for a tenant, in between tentants, etc. How you will pay for the boiler to be fixed, insurances, etc.

A mortgage for a B2L at about £70k would probably be about £600 a month, can you comfortably expect to receive that in rental income

R

Fang_3

Do you live in a state funded house? Would you expect the state to house you if you bought a house? You already expect the state to pay a mortgage for you if you can't find tenants, so do you think it's a good idea? Do you think it's likely that we should pay for you to have two houses?

Thrugelmir

Starscream-08 wrote: »

Sorry if I am being a little slow on the uptake but are you saying with these circumstances the only thing stopping me is the fact I have no job?

Not entirely. As many lenders have a minmum income requirement of £25k from employment and other criteria that have to met in order to lend.

I highlighted the lack of employment as it immediately rules you out.

beecher2

Thrugelmir wrote: »

As many lenders have a minmum income requirement of £25k from employment and other criteria that have to met in order to lend.

I've never heard or read anything about this £25k requirement - seems discriminatory if that is the case. Which lenders have this requirement? I've heard of some who will only lend £25k or more, but not a salary limit.

To the OP, you can't get a mortgage without an income I'm afraid.

MrandMrsWoo

Starscream-08 wrote: »

Hi Guys,

Basically im in a very difficult position financially, I lost my job almost 3 years ago due to depression, grieving finally over the death of my father, and have been unable to find any sort of employment since so obviously am in a damn mess with my finances, my credit score is very weak though I only owe a total of £5,000.00.

Thing is ive now been given an oppurtunity in regards to getting on the property ladder, Ive been garunteed a house worth 140K if I can raise a mortgage of 65K to pay my mothers equity, its mine tommorow if I can do it! Now obviously being stuck on benefits I cant afford to live there So it would be on buy to let... Its a 3 bed property in a good central location, pleanty of people renting in the same street so I dont forsee any problems there...

Question is would a bank be prepared to help with a buy to let mortgage... £70K - £75K would be enough to not only get it but get me debt free and carry out the multitude of cosmetic work that needs doing etc

Do you guys think this is possible?

This may sound harsh and it really is nothing personal so I hope you don't take offence.

"The property ladder" for me is for people who earn it. If you're on the property ladder, moving up, moving down whatever it's because of what you do and how you do it you basically earning your right to own. Having lost my Father so suddenly a couple of years I have great sympathy with you on that front however you have not earned anything for 3 years and need to get back up on your feet.

You have no income or stability which are 2 of the key decisions any lender will make when assessing this situation. Thankfully BTL mortgages are reserved for people with high deposits and back up plans should the property not let. The BTL boom is over and so are quick quid landlords using up equity to support rather ambitious plans to conquer markets. If a bank was to lend to you on the terms you describe I would be VERY VERY worried for all of our futures indeed as it would mean lending criteria would plain and simply gone stupid. I think in all honesty even in the best of best times when money was readily available you would have no chance of securing a mortgage.

If I were you right now I would focus all of my efforts on getting a stable job, repaying your debts and repairing your credit record in that order. Once you have done this, built up a deposit then and only then you can get yourself on the property ladder and build from there.

This is not a missed opportunity... remember an opportunity is only an opportunity if it is realistic, this is a pipe dream!

Good luck with everything I do sincerely hope you get back on your feet soon

Thrugelmir

beecher2 wrote: »

I've never heard or read anything about this £25k requirement - seems discriminatory if that is the case. Which lenders have this requirement? I've heard of some who will only lend £25k or more, but not a salary limit.

To the OP, you can't get a mortgage without an income I'm afraid.

Why is it discriminatory? If the property is empty and therefore not generating rental income. The borrower will need a source of income to cover the mortgage repayments.