Buy To Let First Time Buyer?

Gunstar

Hi Folks,

I'm looking at trying to pickup a property to let out, the grand plan is to get a few smaller properties and give me a little income in my pension years. That's the plan anyways!

I don't currently have a mortgage, I rent as I get penalised for being self employed, I can afford the mortgage I want on the property I want but you know the way self employed are treated. One of the reasons I want to get some smaller properties is to enable me to get a much bigger one for myself.

The problem I just hit is I have spoken to two Banks and neither will offer me a buy to let mortgage as I'm First Time buyer, is there a way around this?

Thanks in advance!

dimbo61

No!
You already know that being self employed ( unless you have 3 years of accounts showing a GOOD INCOME not just a small profit after all expenses!!) is difficult.
You might if you had lots of money for deposit,fees. emergency money be able to get a Normal mortgage for a home to live in but the BTL empire will have to wait a while.

ACG

Speaking to a mortgage broker.

Your options will be very limited but it will be possible.

As for being self employed, you can get a mortgage with just one years accounts/SA302. What you cant do is put everything through the books to declare no/very little income but then say to a bank "i can afford it, i just have a good accountant".

But getting a BTL as a first time buyer, there are less than a handful of lenders available so you will need a broker to do this.

GMS

How much deposit do you have? What purchase price are you looking at?
How much rent per month? What income do your accounts show?

Gunstar

dimbo61 wrote: »

No!
You already know that being self employed ( unless you have 3 years of accounts showing a GOOD INCOME not just a small profit after all expenses!!) is difficult.
You might if you had lots of money for deposit,fees. emergency money be able to get a Normal mortgage for a home to live in but the BTL empire will have to wait a while.

My accounts are good, I have been offered a personal mortgage of a fair amount, just won't offer a BTL.

ACG wrote: »

As for being self employed, you can get a mortgage with just one years accounts/SA302. What you cant do is put everything through the books to declare no/very little income but then say to a bank "i can afford it, i just have a good accountant".

I have been offered a mortgage for myself quite easily, decent amount too, could pickup 3 or 4 small properties with that they offered to me as a first timer on a "normal" mortgage. Just not enough for the house I actually want. BTL I don't meet the criteria.

GMS wrote: »

How much deposit do you have? What purchase price are you looking at?
How much rent per month? What income do your accounts show?

The properties I'm looking at are like 35/40k just 2-up-2-downs, rent in that area is 350-400p/m.

I have 25%+ of the deposit as many request.

GMS

You will struggle with properties so low value. Below the minimum for many lenders.

Gunstar

GMS wrote: »

You will struggle with properties so low value. Below the minimum for many lenders.

What about if I got two?

Nah joking aside what should I do then? It's the way I want to go for sure. I need to do something to secure a better standard of OAP life.

Maybe if I accept a lower personal mortgage and buy a decent house (not the one I want) for myself then I can get the BTL's after that? :S

ACG

Are you flexible in what you will buy?
Would you be prepared to look at properties worth 50-75k and buying 2 instead of 4?

If you can be flexible then i would be confident there will be a solution.

But i still think your best bet is to sit down with a broker getting everything down on paper and let them find a few different options available.

Gunstar

ACG wrote: »

Are you flexible in what you will buy?
Would you be prepared to look at properties worth 50-75k and buying 2 instead of 4?

If you can be flexible then i would be confident there will be a solution.

But i still think your best bet is to sit down with a broker getting everything down on paper and let them find a few different options available.

Yeah I'm open to ideas, I'm flexible as now I'm in my 30's and don't have a pension it's becoming a bit of a worry!

GMS

How much deposit do you have in total?

Gunstar

GMS wrote: »

How much deposit do you have in total?

For my BTL(s), I have 12 set aside, got a few more if needed.