BTL Mortgage for Ltd company director.

pauljrog

Hi, I am looking to apply for a buy to let mortgage, I have a 25% cash deposit with an excellent credit record.

My Ltd company has been trading for just over 1 year, before then I was an employee getting paid PAYE.

In the 1st years trading the company pre-tax profit was about £70,000 and I would like to apply for a mortgage for about £63,000.

The problem is that I have only 1 years of books to prove income, most mortgage lenders prefer 3 years of books, so my question is are there any mortgage lenders out there who have relaxed their rules regarding how long they require proof of income regarding ltd companies.

Please can anyone with experience or advice please help me.

Thanks

Paul.

Crinz

Dont need to prove income with BTL, its all about rental income. If the rent doesnt cover 125% of mortgage you aint getting it. If it does then you can have it (pending credit score)

leveller2911

Crinz wrote: »

Dont need to prove income with BTL, its all about rental income. If the rent doesnt cover 125% of mortgage you aint getting it. If it does then you can have it (pending credit score)

Like a mortgage advisor who gives it to you straight, not all wishy washy and fluffy:D.... respect to the Crinz..

pauljrog

Crinz wrote: »

Dont need to prove income with BTL, its all about rental income. If the rent doesnt cover 125% of mortgage you aint getting it. If it does then you can have it (pending credit score)

Thanks for your answer, when I took some mortgage advice from Yorkshire Bank they told me the only stumbling block is the lack of 3 years books!?

Just to confirm I am applying for this mortgage personally, not a commercial mortgage, so the company is just my proof of earnings.

I can adjust the mortgage application to get me above the 125% mark,

Is there anything else I should know??

Thanks again.

Paul.

unite79

Hence your problem Paul, go and see a Mortgage Advisor, not a bank, Its the Mortgage Advisor who want to help you get the money, the banks will put up as many barriers as possible to save having to lend you money!

Thrugelmir

pauljrog wrote: »

Thanks for your answer, when I took some mortgage advice from Yorkshire Bank they told me the only stumbling block is the lack of 3 years books!?

Just to confirm I am applying for this mortgage personally, not a commercial mortgage, so the company is just my proof of earnings.

You are the Company. The Company is your paymaster.

A BTL mortgage is a commercial loan not a consumer one. So is different in terms of legalities which is what a mortgage actually is. The contract terms will also differ.

pauljrog

Thanks for your replies.

I have found a buy to let mortgage from the post office, when reading about it it says -

no income checks
For our Buy to Let mortgages we base how much we can lend on the expected rental value of the property, That means we don’t need to consider income multiples and income checks.


My original problem is not having 3 years books, so can anyone confirm that this now negates this problem, ie, I don't need to supply my books?

Also does anyone have experiance with this BTL mortgage from the post office as I am very close to applying??

Thanks again.

Paul.

Thrugelmir

The wording is very clear.

Suggest you call them to confirm prior to making an application just to give you the certainty you need.

Does the rental income of the property meet the lending criteria?