Buy-to-let mortgage without permanent job?

Hartson_2

I would greatly appreciate some advice on this matter.

I am a trainee solicitor. This means I am employed full-time on a salary and spend 5 days per week in the office, just like any other job (i.e., I'm not going into uni each week).

A trainee solicitor completes a 2 year training contract. After this period the law firm usually takes you on permanently, but is not obliged to do so.

As a result, I am currently on a 2 year contract and cannot guarantee I will be offered a permanent contract in 2 years, although this will probably be the case.

Would this generally mean that I would be refused an interest-only buy-to-let mortgage until I qualify and receive a permanent job?

I am interested in BTL student properties.

In case it is relevant to the outcome, the salary is approximately £40,000 for the first two years of work.

Many thanks for any helpful advice.

Thrugelmir

Are you already a property owner?

ACG

As thrugal asks...this is going to be the main issue.

If you have never owned a property before then you will find that you will struggle as the number of lenders is limited for first time buyers.

The contract bit may be an issue but a lesser one depending on how long is left of your contract etc.

pooch

Hartson wrote: »

I would greatly appreciate some advice on this matter.

I am a trainee solicitor. This means I am employed full-time on a salary and spend 5 days per week in the office, just like any other job (i.e., I'm not going into uni each week).

A trainee solicitor completes a 2 year training contract. After this period the law firm usually takes you on permanently, but is not obliged to do so.

As a result, I am currently on a 2 year contract and cannot guarantee I will be offered a permanent contract in 2 years, although this will probably be the case.

Would this generally mean that I would be refused an interest-only buy-to-let mortgage until I qualify and receive a permanent job?

I am interested in BTL student properties.

In case it is relevant to the outcome, the salary is approximately £40,000 for the first two years of work.

Many thanks for any helpful advice.

But if no permanent contract if offered, how do you propose to pay the mortgage?

Is there anyone who does have a good credit history and is in permanent employment that would be prepared to act as guarantor for you?

Hartson_2

pooch wrote: »

But if no permanent contract if offered, how do you propose to pay the mortgage?

Is there anyone who does have a good credit history and is in permanent employment that would be prepared to act as guarantor for you?

I am interested in a buy-to-let mortgage. The net rental income will be paying in excess of the interest-only mortgage repayments. I personally will not be paying them (although I can afford it on my salary should the eventuality arise).

If I do not continue my contract after 2014, I will probably manage to get a job elsewhere (not very modest but trying to be realistic for the sake of finding out the answer to my original question).

As for properties, yes I would be a first time buyer.

Hartson_2

And my parents would be prepared to act as guarantors but ideally I'd prefer not to put them in that situation.

Is the conclusion thus that a BTL mortgage can never be your first mortgage?

Hartson_2

Also in addition (if it is relevant), the properties will be owned by a private limited company for tax reasons (but with me as the sole shareholder).

ACG

Guarantor buy to let mortgages dont exist as far as im aware.

If your planning on doing it in a ltd companies name you have no chance as your company presumably has no accounts.

The only chance you have is doing it in your name and thats presuming you have a decent deposit. How big is your deposit?

Thrugelmir

Hartson wrote: »

Also in addition (if it is relevant), the properties will be owned by a private limited company for tax reasons (but with me as the sole shareholder).

You may find lenders unwilling to consider this proposition.

Hartson_2

ACG wrote: »

Guarantor buy to let mortgages dont exist as far as im aware.

If your planning on doing it in a ltd companies name you have no chance as your company presumably has no accounts.

The only chance you have is doing it in your name and thats presuming you have a decent deposit. How big is your deposit?

If I can't buy the first property through the company, I'd ideally transfer it to it at a later date (which I know is definitely possible). I'm looking at properties in south Wales in the 100-110k range. I have found independent mortgage arrangers who can secure 85% mortgages providing rental income is 130% of mortgage interest repayments.

As for deposit, it really depends at what stage. Now, about £22,000. But by the end of the 2 year contract between £35-40k, on an estimate.

Many thanks again for your advice.

Thrugelmir

Hartson wrote: »

The net rental income will be paying in excess of the interest-only mortgage repayments.

Running a business is a little more complex financially.

Have you prepared a business plan? Factored in the what if's?