Buy to let - Interest not covered by rent.

mortgageowen

I see the points and they are all valid.

It just annoys me that somebody who will have the property rented out and has a good income with no loans, credit cards etc cannot get a mortgage.

The reason I find it strange is this:

If you buy a house to live in all the mortgage is outgoing with only income coming in.

If you buy a house and rent it out, you have rent coming in and also income from employment which means there is less chance of defaulting especially as I will be living in pre paid accomodation for the next two years.

I see that all points are solid and valid, but it really annoys me that I am less of a risk than a lot of people who manage to get a normal mortgage.

Thank you for your advice (to all). If anybody has any suggestions, please do post them.

Regards
Owen

Simon_gloster

Some lenders Owen specialise in BTL, some residential. The examples I gave you of policy were from council mort lenders website and was LTSB and chelt & Gloucester.

I can see where you are coming from. Plenty of income etc but not all btl applicants may be in your situation so they draw the lilne somewhere I suppose.

As someone said, TMW and birm midshires will have more flexibilty than most.

Im on my mobile at mo, but have a look at a sub primer like Platform and see what they offer.

Thrugelmir

mortgageowen wrote: »

I see that all points are solid and valid, but it really annoys me that I am less of a risk than a lot of people who manage to get a normal mortgage.

BTL is a business so is treatly different to a residential mortgage. As there are far more risks to be factored into the equation.

Lenders set their terms on the basis of historic data. Not on you as an individual.

mortgageowen

Simon_gloster wrote: »

Some lenders Owen specialise in BTL, some residential. The examples I gave you of policy were from council mort lenders website and was LTSB and chelt & Gloucester.

I can see where you are coming from. Plenty of income etc but not all btl applicants may be in your situation so they draw the lilne somewhere I suppose.

As someone said, TMW and birm midshires will have more flexibilty than most.

Im on my mobile at mo, but have a look at a sub primer like Platform and see what they offer.

Thank you.

-Owen

payless

do you already have a "normal mortgage" have you owned property before?

mortgageowen

Unfortunately not no.

-Owen

horngkai

how about getting a residential mortgage with consent to let?

GMS

horngkai wrote: »

how about getting a residential mortgage with consent to let?

Thats called fraud as the intention from the outset is to let the property. The fact that there is a tenant in place already will also mean a residential mortgage could not complete.

mortgageowen

horngkai wrote: »

how about getting a residential mortgage with consent to let?

I would not want to commit fraud to gain a mortgage.

-Owen