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Buy-to-let mortgage
seven-day-weekend
Posts: 36,755 Forumite
We have been informed today by a mortgage broker that we are not eligible for a btl mortgage as all our income is from Pension income, he says it has to be from employment.
This doesn't sound right to me, our income is actually more secure than people with jobs!
Is he correct? I heard something about a change in legislation.
This doesn't sound right to me, our income is actually more secure than people with jobs!
Is he correct? I heard something about a change in legislation.
(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
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but it seems sensible to me, as you have a fixed income which will go up in line with inflation (if you're lucky) but you are not going to be able to get pay rises or anything like that, and your income is actually being "costed" on living expenses?
Also with the B2L, how will you repay the mortgage at the end of the mortgage loan? I think that's the real crux of the issueFeb 2012 - onwards MF achieved
September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
April 2018 down to 28.00 months vs 30.04 months at normal payment.
Predicted mortgage clearing 03/2047 - now looking at 02/2045
Aims: 1) To pay off mortgage within 20 years - 20370 -
I'm no expert either but I thought the point of BTL is that you sell the property at the end of the term and pocket the increase in value. That is how you repay the mortgage isn't it?originalmiscellany wrote: »but it seems sensible to me, as you have a fixed income which will go up in line with inflation (if you're lucky) but you are not going to be able to get pay rises or anything like that, and your income is actually being "costed" on living expenses?
Also with the B2L, how will you repay the mortgage at the end of the mortgage loan? I think that's the real crux of the issue0 -
originalmiscellany wrote: »but it seems sensible to me, as you have a fixed income which will go up in line with inflation (if you're lucky) but you are not going to be able to get pay rises or anything like that, and your income is actually being "costed" on living expenses?
Also with the B2L, how will you repay the mortgage at the end of the mortgage loan? I think that's the real crux of the issue
We will have a repayment mortgage.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
There are lenders who accept pensions as the only personal income. The rental proposition has to stack up though, with rental income exceeding mortgage interest by 25%.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
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kingstreet wrote: »There are lenders who accept pensions as the only personal income. The rental proposition has to stack up though, with rental income exceeding mortgage interest by 25%.
Yes, it will do that. But why don't they all accept pension income? It's got no chance of disappearing, unlike salaries, especially if the pensions are all from the Government - State and Public Sector.
Oh well, we will carry on looking.
Thanks all for your advice.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
It irritates me immensely that lenders (both secured and unsecured) seem to not want pensioners business. Tried to get an unsecured loan for Gma who has excellent credit rating and a good pension income which as you say is guaranteed but couldn't get one. Lenders seem to have all gone completely scared of pensioners.seven-day-weekend wrote: »Yes, it will do that. But why don't they all accept pension income? It's got no chance of disappearing, unlike salaries, especially if the pensions are all from the Government - State and Public Sector.
Oh well, we will carry on looking.
Thanks all for your advice.
There are some BTL that don't take income into account anyway. The Mortgage Works is one I know of but not sure about its age limit.0 -
Are you a home owner? Do you have any other Buy to Let properties?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
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Are you a home owner? Do you have any other Buy to Let properties?
Yes. Mortgage-free.
No. But have rented out property in the past.
....(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
How much is the pension income per annum? Is it state or private?
What purchase price? How much deposit? Anticipated monthly rent?
Your age(s)?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 -
How much is the pension income per annum? Is it state or private?
What purchase price? How much deposit? Anticipated monthly rent?
Your age(s)?
Joint Income £18.5k at the moment rising to £23.5k next year. At the moment we have a State Pension and a Teachers Pension. In 2014 we will add another State Pension, and a Local Government Pension.
Purchase Price £100k. Deposit £25k-30k. Anticipated monthly rent £550-£600 pcm.
We are 64 and 63.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0
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