BTL with less than £20k salary - IFA view reqd!

soupytwister

All

Wife remortgaging her BTL, but is hitting a brick wall as her salary is <£20k (she's part time on 2 days week so around £17k).

If she were to add me onto the mortgage, there'd be no problem as would obviously exceed that threshold.

Her BTL is <50% LTV, and her rent is at least double the monthly mortgage payment.

Seems a safe bet to me, but she's not finding anyone who will take this on.

Any IFA have any knowledge of a lender who would accept a salary slightly below the £20k threshold given the LTV is low, and the rental more than covers the monthly payment.

GMS

If she has a clean credit history then there should be a lender assuming property is acceptable and rent stacks up. Can the current lender not offer anything?

A broker should be able to arrange this

soupytwister

Yeah....trouble with a broker is that his fee would probably negate the point of remortgaging!! ie, if they're going to charge £1k for a £100/month saving on a 2yr mortgage, then ok, it's a saving of £1.4k over the 2 yrs, but if the product has a fee of £999 or something, then the change is hardly worth it!!!

By going direct, can avoid the broker charge (nothing against IFA's, but in this case, just makes the whole process of limited value).

How much chance has joe public of trying to persuade a front line 1st level customer adviser of getting a panel to look at the application given the circumstances.

I'm sure won't get an IFA reply now I've stated don't want to use an IFA

soupytwister

Oh, and the current lender is Standard Life Mortgages, who don't really want any new business......so not much option to go with the current lender. The rate is on their SVR which i think is 5.99%.

BobQ

Maybe you could offer to act as a guarantor of the loan?

GMS

Buy to Let is a sector where brokers have access to lenders unavailable to direct consumers.

With all due respect if you could miss out brokers then you would have arranged it by now?

Boker may not charge a fee if the lender paid enough commission. If not there may be a small fee.

How much of a loan are you talking about? Many BTL lenders have a percentage produt fee which is ok on small loans but can get expensive with larger loans

hokum_2

themortgageworks.co.uk

Income is irrelevant for their BTL products, loan is calculated on the value of the property and the rental income. Still need a decent credit score though.

holly_hobby

Ipswich B Society don't have the min earned income requirement under BTL (although the app must be in receipt of income either earned or pension), and they must be a current or historical home owner.

They also lend nationwide to direct applicants, but do have geographical restrictions for intermediary business (which is why a non-local mge adviser may have no experience of them).

I have attached a link for your assistance .. http://www.ibs.co.uk/mortgages/mortgages-products/buy-to-let-mortgages

Hope this helps (good luck)

Holly

Wh05apk

TMW and Aldermore are the main ones, but broker only.

I would suggest finding a broker who doesn't charge a fee, there are plenty out there still.

Underscore

agree, find a broker who makes their commission from the back end - get a payment from the provider, which front end brokers take as well normally - who has access to the whole of market - there's money to be saved there without a doubt at a current SVR of 6%

soupytwister

GMS wrote: »

Buy to Let is a sector where brokers have access to lenders unavailable to direct consumers.

With all due respect if you could miss out brokers then you would have arranged it by now?

Boker may not charge a fee if the lender paid enough commission. If not there may be a small fee.

How much of a loan are you talking about? Many BTL lenders have a percentage produt fee which is ok on small loans but can get expensive with larger loans

It's currently only a £60k loan. If a broker can make his £ on the commission without cost to me, then all the better............