Buy to let can someone enlighten me please?

Hpriddle1 · 26 March 2007 at 9:59PM

My boyfriend and I's financial situation is that he has bad credit with the yearly salary and I am self employed with wonderful credit but no good way of proving income. Because of this we have been advised to maybe try buy to let. It hasn't been set in stone but it was just a suggestion. Anyway I am unclear of what it entails please could someone enlighten me.

JoeK_3 · 26 March 2007 at 10:06PM

It may be advantageous if you could explain your incomes more and the size of mortgage that you are considering..

Do you have any savings or a deposit.
What property value are you looking at?

JoeK

mystic_trev · 26 March 2007 at 10:09PM

I don't want to appear rude, but are you really prepared to take a serious financial risk with your? money, if your BF has bad Credit problems?

Hpriddle1 · 26 March 2007 at 10:13PM

OK. My income is £26000 but can vary cause I'm self employed. My boyfriend earns £20000 on a regulary income. We have a deposit of £30000 which we are trying to increase to £36000 to cover other expenses such as stamp duty etc. The value of the property we were looking at was £207000 which will get us a nice looking shed in london even though we are on the out skirts.

Hpriddle1 · 26 March 2007 at 10:15PM

I would agree with you if the credit problems were recent however I am know in charge of all money and he pays his wage into my account every month via standing order. It was his past stupidity that has put us in this situation. Sadly the past soon catches up with you. However my self employment hasn't helped.

mystic_trev · 26 March 2007 at 10:20PM

£30,000 is only 15% deposit. Will your rent cover the mortgage? What about voids? and of course (the worst) what hapens if you get the tenant from hell, dosen't keep up with his / her rent, wont move out and you have to take them to Court. Even worse, what happens if they trash the place before being evicted? Make sure you go into this with your eyes wide open!

Hpriddle1 · 26 March 2007 at 10:24PM

I don't intend renting it to anyone other than my boyfriend. The whole point of why we are looking at this is due to the fact other mortgages are looking difficult for us to get. I have no intention of letting any stranger into my home. It was to see what it was and if there was a way around it if my boyfriend rented from me.

mystic_trev · 26 March 2007 at 10:29PM

You won't get a BTL mortgage for renting to your BF.

Mr_helpful · 26 March 2007 at 10:30PM

This is fairly easy i think as BTL or as resi with mainstream lender on your income alone the choice is yours with a decent broker

Hpriddle1 · 26 March 2007 at 10:31PM

It's not something that I have thought of it was mentioned by our mortgage advisor but it was more him speaking out load so I just wanted to understand a little more about it.

mystic_trev · 26 March 2007 at 10:34PM

Sorry, I should have added that this is not the way to try and obtain a mortgage on a Primary residence. Have you tried any of the sub-prime lenders? I believe Kensington can't give money away quickly enough at the moment!