Would i be eligable for a BTL mortgage?

Hazza88

Hi i recently came into some inheritance and im looking to buy my first property. The prices of flats where im looking are £130k-135k and i have 100k of my own money to put in. I was looking into buy-to-let mortgages and was wondering if if would be eligable for 35k mortgage on top even though im currently unemployed and 24? I hear that they dont base wether you can get them or not on your income but rather the estimated rent? But ive also read in other places that you need to be in employment especially if your a first time buyer. Would be greatful if anyone more experience in this could shed some light, thanks!

Thrugelmir

No employment no chance of a BTL mortgage.

Some lenders also may require a borrower to own a residential property as well.

holly_hobby

You need a residential mge, or at least a history of one (ie if your home is mge free), and all lenders require you to be in employment, some also have a min income of 25K.

So unfortunately for several reasons this isn't a go'er I'm afraid.

Hope this helps

Holly

Hazza88

Would a joint mortgage with my mother be an option? She is 60 and still repaying some mortgage on her house

holly_hobby

Yes, but she would need to meet any min income (and status requirements (whilst age isnt so restrictive on a BTL).

As a first time landlord you would be limited to a max 75% ltv (so 25% deposit needed), rental income 125% of mge interest (6% ballpark figure used).

You'll need funds for the conveyencing, stamp duty and lender fees.

Mum would ALSO be exposed to reporting of rental income (and any tax) and capital gains on her share on sale. (to which a tenants in common arrangement would be advised to mitigate her exposure).

Of course you have all the responsibilities and costs of being a landlord, and you will have to declare your income to DWP in respect of any benefits you are in reciept of.

See an independent broker if you want to pursue this line of enquiry.

Hope this helps

Holly