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Earnings required for a 190k BTL - Self Employed / 1Yrs Accounts
swooph
Posts: 12 Forumite
Hi guys, bit of info needed from the experts....
With the current products available, what sort of profit will I need to earn in my self employment to be accepted for around 190k mortgage borrowing? Buy to Let or residential
Also, I only have one years accounts, are there lenders that will accept this and how will it affect my options?
Thanks for your help
With the current products available, what sort of profit will I need to earn in my self employment to be accepted for around 190k mortgage borrowing? Buy to Let or residential
Also, I only have one years accounts, are there lenders that will accept this and how will it affect my options?
Thanks for your help
0
Comments
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For BTL it's more to do with deposit %age and rent cover of the interest.No reliance should be placed on the above! Absolutely none, do you hear?0
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We need to know the purchase price, mortgage amount and hence loan to value and anticipated rental income.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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kingstreet wrote: »We need to know the purchase price, mortgage amount and hence loan to value and anticipated rental income.
Is that so you can work out the deposit %age and rent cover of the interest, then?
No reliance should be placed on the above! Absolutely none, do you hear?0 -
kingstreet wrote: »We need to know the purchase price, mortgage amount and hence loan to value and anticipated rental income.
I havent seen a specific house of interest yet, but at a glance I'd be looking around a purchase price of 250k ish, and be able to put down anything between 25% and 35%
Rental income on the types of houses I'm looking at has been quoted as 1600 - 1900pcm0 -
Some lenders require a personal income of upto £35k pa before they'll look at a BTL application. In most cases, you'll also be expected to own and occupy your own home too.
On top of that, they use a formula to work out the feasibility of the BTL proposition. Typically it's;-
Rental income must equal or exceed 125% of mortgage interest @ 6%pa.
As an example, if you buy for £250k and put down £62,500, that will give you a 75% mortgage of £187,500. The monthly interest payment at 6% is £937.50. The minimum rent requirement is 125% of that, £1,172.
Your self-employment may be an issue for some of the high street lenders, but I'd talk to a whole market broker or two, as the BTL market tends to centre on broker products, rather than those offered direct.
GDB - yeah. Behave.
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Nearly 2k for renting a house worth 250, wow ! what area is that.0
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GDB had already asked the same questions I asked, but I hadn't noticed so he was gently pointing out to me I'd been a plank. Dunna worry, a few of us spend far too much time on here.Am I missing the significance of the wink? I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Some lenders require a personal income of upto £35k pa before they'll look at a BTL application. In most cases, you'll also be expected to own and occupy your own home too.
On top of that, they use a formula to work out the feasibility of the BTL proposition. Typically it's;-
Rental income must equal or exceed 125% of mortgage interest @ 6%pa.
As an example, if you buy for £250k and put down £62,500, that will give you a 75% mortgage of £187,500. The monthly interest payment at 6% is £937.50. The minimum rent requirement is 125% of that, £1,172.
Your self-employment may be an issue for some of the high street lenders, but I'd talk to a whole market broker or two, as the BTL market tends to centre on broker products, rather than those offered direct.
GDB - yeah. Behave.
Own your home... goes without saying no?
Occupy... Then why buy to let and not residential?
What about the issue of one years accounts?0 -
Plenty of threads on here by people renting and living with parents wanting a BTL...
One years accounts will be an issue for some high street lenders, hence my suggestion of a broker.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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