Buy to let mortgage

glemmon

Hello

I need some advise on a buy to let mortgage. I have seen this house that I want to rent for £115K now me and my partner earn around £80k ayear. My only problem is that my partner four years ago had a dispute with a car credit company and to cut along story short had a default for £8500 put on her credit file.

What I need to know could we get only of these mortgages and how would we go about it?

Many thanks

Gareth

herbiesjp

Has the default been cleared?

glemmon

No but the debt is almost 5 years old now.

herbiesjp

This may cause problems with some BTL lenders

Your best bet is to get in contact with a fee free whole of market adviser, armed with the credit file, and let them find a good deal

Purchase price is £115k - what deposit do you have?
What is the expected rental income on the property?

glemmon

I have a 10K deposit
Monthy Net from rent looking at around £500.

I would try and do it in my name as my credit file is clean but I only earn £16K my partner is the main bread winner so I don't think I could even get a mortgage for the above amount!

Leon_W

If it's a buy to let then your income is of no consequence, most lenders have a minimum of say £10k so thats not a problem.

Just do it in your name. This removes the problem of your partners poor credit.

Your biggest problem is the deposit and level of rent you would receive. You'll need a minimum of 10% deposit AND meet the lenders rental calculation.

Rental calculations vary from lender to lender, but if you are only receiving £500pm with a small deposit I think you will struggle but consult a broker as the details you have given are too limited for me to spout chapter and verse.

All the best.
Leon

UK007BullDog

BTL mortgages go mainly on the rental you can get. You need a 15% deposit and the rental needs to cover up to 130% of the mortgage (interest only). Your figures do not fit. So you need more deposit.

BTL are self financing so no need to worry about your income (except for a few lenders where you are a First Time Landlord and inexperienced).

UK007BullDog

There are lenders that will take less deposit and less rental cover but you pay for the privilege with high interest rates.

You also need to figure in solicitor and survey fees. And the booking/reservation fee could be anything from 0.5% - 4%.