Help with btl please.

GMS

At age 18 your daughter is outside of criteria for a Buy to Let for most lenders with a minimum age of 21 required.

Without a 25k minimum income she will also fall outside of Buy to Let criteria for almost all.

Will your own income support a further advance on your mortgage?

CBR600F_2

What do you have against housework?

holly_hobby

GMS wrote: »

Will your own income support a further advance on your mortgage?

OP is in receipt of income & WTC & CTC - lender reqd to accept benefits (with CTC to cease within the next 2 yrs).

I would guess on the above shes stretching it ... but don't know any figs (or if there's any adverse in the mix) to give an accurate answer. I don't think she's yet approached her existing lender for their view on a FA .....

Holly

hateshousework

I have a 4 storey house which is why I hate housework

Skipton went through figures on the phone and did a credit check and doesn't look like there would be a problem there.

I need to have a good chat with DWP when I have some figures to see what the implications would be.

Thanksfor taking the trouble to explain all this to me Holly, you certainly seem knowledgable, is this your field of expertise?

Simon_gloster

I think it has already been said on the thread, but I'll recap for your benefit OP.

Most lenders will have a minimum income for BTL's. Most will def have a minimum age (if she's 18 I think this will be the biggest problem) and the majority do not do BTL's for First Time Buyers.

If you can get additional borrowing with Skipton, check out their lending policy online around existing interest only customers looking to take further borrowing. I would seem any new lending will need proof of how to pay it back and the plan would have to already be in place, if not, its a repayment mortgage.

It may have been what you were considering anyway, however thought I'd point it out just in case you were thinking of doing int only.

holly_hobby

hateshousework wrote: »

Thanksfor taking the trouble to explain all this to me Holly, you certainly seem knowledgable, is this your field of expertise?

I'm a qualified Finanical and Mge Adviser - but currently operate within the compliance and regulatory side of things, instead of working as a broker/IFA.

I just want you to look at all sides of this, and don't want you for the sake of saving a few £s in WTC, open yourself up to claims of lets put it a nice way .. "non-disclosure" ... by DWP, with any action they may wish to take on discovery.

I understand your situation from your PM and sympathise, but it goes without saying that this wouldn't allow DWP to excuse you from manipulating the benefits system - its there for those in need, of which you obviously are at the moment. Indeed the declaration of the net rent to DWP, may still not take you out of WTC eligibility or force a total loss of benefit, but would sure make you sleep easier knowing you are genuinely entitled to any benefits you retain post disclosure ... and that has to be worth something to you.

On the BTL side there are a couple of lenders re income below 25k isn't an issue, but a purchase price at just 40k would be. So the reality of this is, if you can't secure a FA with Skipton, then its a change of lender, or this is a dead duck - as BTL is out of play due to the low property pch price

Let us know how you get on .... good luck ...

Holly