BTL Mortgage without certifiable income - any advice

mystic_trev

A few details.

I currently own four and a half properties, no mortgage,these were bought in the mid to late 90's. I've only ever had one mortgage and that was on my primary residence paid off a long time a go. I retired at 42, 15 years ago and have been living off Investment income since then. Most of my Capital is tied up so I'm reluctant to cash in any of these.

Properties I'm looking at are in the 230 - 250k and I've no problem stumping up 25% so looking for a 75% Interest only mortgage preferably without arrangement fees. I'll be able to pay the Capital off within the next 5 - 10 years. I'm quite happy to use a Mortgage Broker as I'm sure this will be the best route?

Any suggestions on what I should be looking for and any potential pitfulls?


Thanks

kingstreet

The Mortgage Works - take rental income into account at 125% of interest-only monthly payment and aren't worried about personal income. You'll need a broker to do it as it's not available direct (I don't think - have a look).

http://www.themortgageworks.co.uk/content/home/

jesmin45

Kingstreet, are aldermore interested in confirmed income, I heard they were not, but now may have changed their criteria?

Is it right that if you are borrowing at 75% LTV and the rental income is confirmed that as long as you earn the minimum amount required as stated by the lender, in Aldermores case £25k that will be ok with them

holly_hobby

kingstreet wrote: »

The Mortgage Works - take rental income into account at 125% of interest-only monthly payment and aren't worried about personal income. You'll need a broker to do it as it's not available direct (I don't think - have a look).

http://www.themortgageworks.co.uk/content/home/

Kings,

See Mge Works are NW BS, guess they are in old money - UCB ?

Holly

kingstreet

jesmin45 wrote: »

Kingstreet, are aldermore interested in confirmed income, I heard they were not, but now may have changed their criteria?

Is it right that if you are borrowing at 75% LTV and the rental income is confirmed that as long as you earn the minimum amount required as stated by the lender, in Aldermores case £25k that will be ok with them

Hope this might help;-

http://www.aldermore-mortgages.co.uk/images/stories/literature/ARM13-0611-300043.pdf

kingstreet

holly_hobby wrote: »

Kings,

See Mge Works are NW BS, guess they are in old money - UCB ?

Holly

Portman BS had TMW and Nationwide had UCB. When Nationwide took over Portman they continued TMW and ended UCB.

holly_hobby

kingstreet wrote: »

Portman BS had TMW and Nationwide had UCB. When Nationwide took over Portman they continued TMW and ended UCB.

Thanks for the update Kings - so many have disappeared haven't they !!

Holly

kingstreet

holly_hobby wrote: »

Thanks for the update Kings - so many have disappeared haven't they !!Holly

Some great lenders have appeared and disappeared in the time I've worked in the industry. Gateway BS, swallowed by the Woolwich, in turn scoffed by Barclays.

The 80s glut of centralised lenders, The Mortgage Corporation, HMC and National HomeLoans. UCB, Capital Home Loans, the Credit Foncier/Societe Generale joint venture...

Staffordshire Building Society, Portman, Cheshire and Derbyshire all swallowed by the mighty Nationwide. Leeds Permanent absorbed into Halifax. Bradford & Bingley all but gone. Same for Mortgage Express. C&G part of LTSB. Even NatWest being taken over by RBS.

How long before we're down to a handful of lenders and very little consumer choice?

holly_hobby

Been predicted for years (once the mutuals started going to banks it was really the beginning of the end, same with ins companies too, 2 very large and very well know life companies I worked for have both closed their book to new business .. and also merged and took over other smaller fish - they now concentrating on general bus instead).

Do you remember BDMS (Barclays Direct Mge Svcs) and also BNP & Citibank who loaned in our market !! They were just a couple of the lenders we placed and packaged for early 90s (when I headed a large ins company regional broker mge desk) ) ..

BDMS were great ... they had high income mulitples (3 x joint from memory :eek:) did self cert (in the days when you HAD to be self employed) and you could anything passed them ... oh I miss those heady days !!

No wonder they had to close their book due to "their exposure in the market" (that was early 90s) ..... I wonder how much of their book subsequently went bad ...

Bet the brokers still going from that time, miss the good old days ... and who can blame them. It must be a nightmare, post recent fall out to get anything through .. even when its clean !!!


Holly

Thrugelmir

kingstreet wrote: »

How long before we're down to a handful of lenders and very little consumer choice?

Don't the big 6 lenders account for 92% of all new mortgage advances?

Not sure that a multitude of choice of lenders is an issue. As variety of products far exceeds that of even 15 years ago.

What's required is more mutual organisations that lend on a local community basis. Which in turn will instill the saving habit.

holly_hobby

Thrugelmir wrote: »

Don't the big 6 lenders account for 92% of all new mortgage advances?

Not sure that a multitude of choice of lenders is an issue. As variety of products far exceeds that of even 15 years ago.

What's required is more mutual organisations that lend on a local community basis. Which in turn will instill the saving habit.

From a placement point of view I would say it is a big issue .. as its the variety of criteria and lending practices between the differing lenders thats now missing - as it used to allow you to pretty much find a home for most circumstances ... even heavy adverse.

Of course an attractive product (rate & terms) is also important to the mix, but you first have to find a suitable lender from the few that remain ...

Hollly