Can I get a Mortgage?

Eddie_Walker

I was just wondering if there is any point me even attempting to get a mortgage!

I am currently a mature student, with no formal income. However, I have just bought my second property (a cash buyer), after renovating the first, with a plan to do that again, so have made an income from this (around £20,000).

I have a lump sum of £206,000, and was wondering if this would be enough to encourage a mortgage company to consider me for a buy to let mortgage.

The goal would be to buy a property around the £250,000 mark, creating an rental income of around £16,000.

Also, if you buy a 3 bed flat, could you get a buy to let mortgage if you intended to live in the property, but rent to other two rooms out? (If this was the case, the annual income would be around £10,800 rather than £16,000).

Any advise would be much appreciated.

ACG

At that loan to value you would be able to get a mortgage.
You would potentially have more (and lower) rates available if the £20k was declared income.

As for the BTL and ilving in the property - that would be a residential mortgage you needed.

Eddie_Walker

ACG wrote: »

At that loan to value you would be able to get a mortgage.
You would potentially have more (and lower) rates available if the £20k was declared income.

As for the BTL and ilving in the property - that would be a residential mortgage you needed.

Thank you for the information, that's very helpful.

If I had a residential mortgage, would I be able to use the planned income from renting out two of the rooms as my 'income' to gain the mortgage?

ACG

The short answer is no. Lenders do not take ledger income (which is what they would be) into account.

Eddie_Walker

ACG wrote: »

The short answer is no. Lenders do not take ledger income (which is what they would be) into account.

Oh bother. Thought it might be a long shot.

Living there is the entire point. Mortgage repayments are less than renting. If I bought it as a buy to let, I'd be paying both mortgage repayments and rent, so that's not an option.

The only income I am currently making is from the property, either doing it up and selling it on, or from tenants, or lodgers.

If only I lived somewhere cheaper, this wouldn't be such an issue with the amount I have in cash. Silly south east.

I will be starting to make a small income involved with my studies shortly, but then I shall be self employed, so that's a whole other difficulty right there!

ACG

Im assuming your £20k income was not declared?

If it was you should be able to get an SA302 from the tax man. At such a low LTV there will be lenders who will accept with just the 1 years SA302.

Eddie_Walker

ACG wrote: »

Im assuming your £20k income was not declared?

If it was you should be able to get an SA302 from the tax man. At such a low LTV there will be lenders who will accept with just the 1 years SA302.

Ah, yes, it was declared. Thank you! That's a bit more positive then.

Dave_Ham

This certainly sounds achievable, although not every lender is going to like this scenario.

Worth having a formal chat with a broker, although the number of years of account/declared income is likely to be the determining factor of lenders suitable for your needs.

Good luck