Another can I get a mortgage thread?

beecher2

Thrugelmir wrote: »

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.

I'm not talking about the OP's situation - I'm talking about what you said about lenders only lending to people who earn above £25k. I've never heard of it - I earn slightly under £25k and would think it discriminatory if I was not allowed a mortgage of £50 - 75k. Could you link to a lender with this criteria as I'd be interested in seeing what it says having never come across that in the times that I've mortgaged/remortgaged.

_Andy_

beecher - the £25k is mainly specific to BTLs (although plenty of lenders still have minimum incomes for resi mortgages)

beecher2

_Andy_ wrote: »

beecher - the £25k is mainly specific to BTLs (although plenty of lenders still have minimum incomes for resi mortgages)

Thanks for that - I take it residential mortgage lenders' minimums are lower, since £25k is roughly the median wage.

_Andy_

beecher2 wrote: »

Thanks for that - I take it residential mortgage lenders' minimums are lower, since £25k is roughly the median wage.

I've been out of the industry for a while but I recall quite a few having £10k as the lowest, sometimes a bit higher.

Thrugelmir

beecher2 wrote: »

I'm not talking about the OP's situation - I'm talking about what you said about lenders only lending to people who earn above £25k. I've never heard of it - I earn slightly under £25k and would think it discriminatory if I was not allowed a mortgage of £50 - 75k. Could you link to a lender with this criteria as I'd be interested in seeing what it says having never come across that in the times that I've mortgaged/remortgaged.

BTL is commercial lending which has different criteria to residential lending. The distinction became blurred during the credit boom.

Although BTL is referred to as a mortgage, as its secured on property, its on a totally different contractual basis to a residential mortgage. The FSA does not regulate BTL lending and there is no protection under consumer law.

beecher2

Thrugelmir wrote: »

BTL is commercial lending which has different criteria to residential lending. The distinction became blurred during the credit boom.

Although BTL is referred to as a mortgage, as its secured on property, its on a totally different contractual basis to a residential mortgage. The FSA does not regulate BTL lending and there is no protection under consumer law.

I understand now -I didn't realise that your post was referring to BTL mortgages.

Thrugelmir

beecher2 wrote: »

I understand now -I didn't realise that your post was referring to BTL mortgages.

There's always been commercial lending to buy residential property. Its only in the post 1997 boom. That the term BTL has come to the fore. As "mortgages" for BTL purchase rose from around 30,000 to over a million.