Buy to let advice please

melj16

For the past year me and my husband have planned everything around buying a house this year, I even went back into employment in November to makes things easier, as I was self employed prior to that.

Just when we have managed to save up a deposit and get the ball rolling, and my husband has been offered a new job, much much better than the one he currently has.

This would mean he would be on 6 months probation, however to make things (for the mortgage) a little more complicated the job is for an international company, and based in Paris. Consequently, the chance of us getting a residential mortgage together is out of the window.

I have been given the opportunity to join him in Paris, all expenses paid, and after weighing up the expense of me living over here and him living over there.....we will be better off financially if I live over there - even without my wage.

I do not, however, want to throw away all the hard work and preparation that has gone in over the past year, so I am thinking about buying a property to let out instead, in my sole name. The deposit is there - so I'm thinking it would be a great investment for me and my family.

I earn £21000 per year, and have put an offer in on a property at £58000 which is already tenanted bringing in £400 pcm. have a 30% deposit so would in effect need to mortgage £40000.

I have never owned a property before, this will have to be in my sole name.

I am wondering how strict the credit search will be at this LTV. I have one late payment marker for a credit card showing from May 2012. And in Jun/Jul/Aug 2011 there are 3 consecutive missed payments on Orange phone bill. It never went to default and was settled in the Aug 2011.

I am absolutely petrified at applying and being declined, I do not want to cause any more damage to my credit files with more credit searches.

Any advice would be much appreciated thank you.

Thrugelmir

Majority of BTL lenders require borrowers to already be home owners in their own right.

Do you want of the hassle of managing a property from some distance away? Agents fees will eat up a considerable amount of any profit from letting.

betmunch

If you dont apply then I can guarantee you wont be accepted.

If you apply you might be accepted.

Theres nothing to be petrified about.

kingstreet

Things to watch out for;-

- many lenders won't lend on a BTL to a FTB
- some lenders don't like sitting tenants they want a new AST after completion
- your income is too low for some lenders who have £25k or even 35k min
- rent must be 125% of monthly mortgage interest @ 6%pa.

Do you have an agreement from a lender?

ExpertAdvice

Hi,

Firstly, with most of the lenders, you would need to be a homeowner for certain period as they don't entertain first time buyer for BTL.

Secondly, alot of BTL mortgages require minimum income to be £25k per annum.

Thirdly, with some lenders, price of property could be a limitation as well.

I'm sure others will provide some input as well.

ExpertAdvice

Oops, i think i posted at exactly the same time as others so couldn't see their replies!!!

melj16

thanks for the replies.

I've got a DIP from London and Country.

They said there are a small number of lenders who will lend to FTB's for a BTL and with a minimum salary of £20k.

I do my banking with Barclays so have just spoken with them today and they said their minimum income requirement is also £20k I need to check about the FTB part.

I dont believe there are many other lenders who will accept FTB.


Sorry what is an 'AST after completion'?

Thanks again

kingstreet

Assured Shorthold Tenancy.