We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Applying for a BTL mortgage after debt
TIPB
Posts: 5 Forumite
Hi
I currently got into £8k credit card & payday loan debt, this all happened in the space of 5 months. Luckily once I sold my home I was able to pay off the debts on my credit card and payday loans.
Now that I've got some free cash I'd like to enter to the buy to let business. Will my short stint of debt go against my chances of getting a mortgage? Even though I'll be able to place down a hefty deposit?
Not sure if the question belongs here...just redirect me.
Thank you
I currently got into £8k credit card & payday loan debt, this all happened in the space of 5 months. Luckily once I sold my home I was able to pay off the debts on my credit card and payday loans.
Now that I've got some free cash I'd like to enter to the buy to let business. Will my short stint of debt go against my chances of getting a mortgage? Even though I'll be able to place down a hefty deposit?
Not sure if the question belongs here...just redirect me.
Thank you
0
Comments
-
It will depend on what's on your credit file.
Any missed or late payments, defaults or court judgments?
Typically, you'll need 25% deposit or more and the rental income needs to be 125% of the monthly mortgage interest, assuming a rate of say 6% per annum.
Many BTL lenders want you to own a home of your own and have a minimum personal income of £25k or more.
Properties need to be readily lettable with no major problems.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 -
You'll also need to be in the UK to build up a credit score/electoral roll history.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
-
Thanks for the response guys! Very useful.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.5K Work, Benefits & Business
- 601.3K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards