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Can they get a mortgage?
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knuckledragger
Posts: 999 Forumite
My friend takes home about £1100 per month. They have no outgoings.
Are there lenders out there who will look at afffordability and not earnings multiples to decide whether to lend, possibly on a buy to let basis. They will have a deposit of between 10-20% depending on the purchase price of the property.
Any thoughts?
Are there lenders out there who will look at afffordability and not earnings multiples to decide whether to lend, possibly on a buy to let basis. They will have a deposit of between 10-20% depending on the purchase price of the property.
Any thoughts?
...and then the window licker said to me...
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knuckledragger wrote: »My friend takes home about £1100 per month. They have no outgoings.
Are there lenders out there who will look at afffordability and not earnings multiples to decide whether to lend, possibly on a buy to let basis. They will have a deposit of between 10-20% depending on the purchase price of the property.
Any thoughts?
A buy to let mortgage is rarely based on income (although some income is required), it is predominantly based on rental income.
The lenders valuer will go out and value and assess the property for rental income and will base the lending decision on that report.
Generally, they will lend around a ratio of 125%/ 100% that's £125 per month rent to £100 per month mortgage costs.
A 15% deposit would allow you to choose from the entire buy to let market.
Do get a good whole of market mortgage broker.
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
Knuckledragger,
Are they wanting a buy to let mortgage to get the level of borrowing they need to buy a house for themselves to live in?
What sort of borrowing are they looking for, do they have dependents etc..I am a Mortgage AdviserYou 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.0 -
Sorry for the late replies guys.
In a nutshell they are married with a family. Their partner comfortably takes care of all family outgoings. They have no mortgage in their name and would like to purchase a property as a holiday home/for rental. They would keep it for about 8-15 years and then sell it. It is unlikely that they will need to sell it before this period. They could easily afford £500-600/month to pay out on a mortgage (assuming that there was no rental income).
Would they be better off getting a staightforward residential motgage and "living" in the property themselves...
hth...and then the window licker said to me...0
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