Mortgage Required, No Job but have Assets

luciovito

Hi

I am recently self employed and have no proof of income.

I own outright (no mortgage) 3 small properties in the midlands which I rent out. The realistic combined value of the properties is approx £200K. All three houses have been let on 12 month agreements.

Problem: I was living with my partner in her property but decided to split. I've temporarily moved into my brother's house. He has a wife and two kids!

I'm looking for a mortgage so that I can buy a small flat for myself to live in. Is it possible for me to get a mortgage based on the assets I have and the fact that the properties are rented out? Like I say, I have just started working for myself so no accounts for proof of income.

If I could get a mortgage, what type would it be? and would I need to go through a broker?

Meeper

You could potentially get buy-to-let mortgages on your rental properties as the rental income will service the debts. There are a couple of lenders who will do this regardless of your personal income. The Mortgage Works, for example, which is the specialist arm of Nationwide who only deal via intermediaries.

holly_hobby

Yes, agreed with Meeper - you could seek further advances on your current BTLs, and as a portfolio landlord you should be able to base the affordability solely on the rental income matrix.

The interest element of the further advances are also fully tax deductable (upto the original pch price of the units, or value when they entered commercial let). Anything above this amount is fine for mge purposes, its just not tax deductable under HMRC regs.

You won't achieve a residential mge at this point, so you are really looking for a cash purchase, as you would also be unable to officially source a BTL mortgage for your own residence (often seen as a back door route when affordability is an issue), due to the regulation of BTL mges and primary residence issues.

Whats wrong with going into rented until on of your tenancies are up, and then moving into one of your exising BTL propeties ? (advising the lender of the change of residency of course i.e let to primary res) ?

If you are intent on buying at this present time, seek the assistance of a whole of market mge broker, whom will not only source the most suitable lender and product for your requirments, but support you throughout the entire application process and beyond.

Hope this helps

Holly

luciovito

holly_hobby wrote: »

You won't achieve a residential mge at this point, so you are really looking for a cash purchase, as you would also be unable to officially source a BTL mortgage for your own residence (often seen as a back door route when affordability is an issue), due to the regulation of BTL mges and primary residence issues.

Thanks for all the replies.

Can you just clarify something for me. You say I won't be able to get a residential mortgage atm, and I'll be unable to officially source a BTL mortgage because of primary residence issues; so what sort of mortgage would I qualify for?

holly_hobby

As you are currently unable to satisfy lenders salary requirements, you won't qualify for any residential mortgage I'm afraid, and will instead need to be a cash purchaser. (sourcing the funds from your current portfolio as already suggested by Meeper)

Hope this helps

Holly

luciovito

Meeper wrote: »

You could potentially get buy-to-let mortgages on your rental properties as the rental income will service the debts.

My rental income is about £1200 pcm when all three properties are occupied. I have to take the usual expenses out eg letting agents fees; insurance etc

Any idea of how I can calculate how much I can borrow? Is it based on the value of the properties I own, the rental income, or both?

getmore4less

Rent somewhere using the net rental income till the business is sorting itself.

Most BTL loans have large up frnt fees and highish rates.

Thrugelmir

Sell 1 or 2 of your investment properties and buy a home outright.

JohnDoe1

Meeper wrote: »

You could potentially get buy-to-let mortgages on your rental properties as the rental income will service the debts. There are a couple of lenders who will do this regardless of your personal income. The Mortgage Works, for example, which is the specialist arm of Nationwide who only deal via intermediaries.

Who is the other lender apart from mortgage works?