Is it possible to get a buy to let mortgage with no job?

galapog18

Hi there

Please can someone give me advice regarding a question I have about Buy-to-Let mortgages.

I am a British Expat based in Melbourne. I took a redundancy package from my employer at the end of last year and I'm currently in SE Asia on a career break. I have around 50k GBP in my UK bank account gaining no interest and I want to try and do something about this. I was wondering whether using the money as a deposit on a buy to let property would worth considering as an investment opportunity. I am not currently a home owner and I thought that this might be a good way to get onto the property ladder as I plan to return to the UK in the future.

My main question is whether a UK mortgage broker would grant me a buy to let mortgage given that I'm currently not working and I intend to continue to live overseas. I have sufficient savings in addition to the 50k to pay the mortgage for at least 12 months by which time I intend be working full time again. Would this be enough to convince a broker that I'm worthy of a mortgage?

Thanks in advance

highguyuk

Unlikely, as "intending" to work again and "actually" working again so that you can pay the mortgage are two different things.

kingstreet

It's not a broker which makes the decision. It's the lender the broker finds for you.

As well as having no employment, you are also not resident in the UK which will put off most of the BTL lending market.

I don't see this as a starter, I'm afraid, but you could try a broker who specialises in ex-pat stuff.

rockitup

Don't know if this is still worth recommending currently, but just over a year ago I was told that Ulster Bank would lend to Expats for BTL mortgages.

May be worth giving them a try. Let us know how you get on please

kingstreet

rockitup wrote: »

Don't know if this is still worth recommending currently, but just over a year ago I was told that Ulster Bank would lend to Expats for BTL mortgages.

May be worth giving them a try. Let us know how you get on please

Is that restricted to Northern Ireland, or UK-wide?

ILW

How would you cover maintenance etc?

nomoneytoday

If the place is empty (touch wood it's not) then how would you pay the bills?

rockitup

kingstreet wrote: »

Is that restricted to Northern Ireland, or UK-wide?

I was informed about it from a Northern Ireland resident but he seemed to think that Ulster Bank offered BTL mortgages across the UK to Expats.

In the end I decided against the idea as I didn't want to be at the mercy of letting agents and maintenance/repair bills that could be much higher than they should whilst I wasn't around to check them out.

sandsni

The alternative is you could look for properties to buy outright within your £50k limit and then you wouldn't need a mortgage. The number of repos being sold at auction well below market value might make it a possibility. Obviously this would restrict the type of properties you could afford and the locations you'd be able to buy in, but you wouldn't have to borrow and be at the mercy of the lender if you didn't find work as quickly as you hoped.

GreatBigBookcase

A friend of mine living and working in SEAsia has just bought a BTL property in London, but she couldn't find a single UK bank willing to give her a BTL mortgage despite being in a very well-paid and secure job. She ended up getting a mortgage with a bank in Hong Kong (where she's working)...I believe there were just two local/Chinese banks that would consider her application.

Sandsni makes a good suggestion. And aside from auctions there are companies that source below market value properties from 'motivated' sellers. They charge a finder's fee of course, but this is sometimes more than covered by the difference in the market value and the price they negotiate. You could definitely buy something outright with your 50k.

Good luck.

Cornucopia

I was told that lenders now require a salary of at least £25k to obtain a BTL mortgage.