Does personal debt affect a BTL mortgage?

rachel23

Does personal debt affect getting a BTL mortgage?

We have 25% deposit and the rental income more than covers the mortgage payment.

amnblog

not in itself but it can affect factors that affect the mortgage such as credit score

if you have an excessive amount of personal debt that could start the lenders running

rachel23

Have an excellent credit score but I would say yes to excessive debt - unsecured across loans and c cards totalling £35,000.

Let_Us_See

Your income? With a £500k income £35k might be deemed acceptable, but for someone with a £50k income it could be a significant barrier.

GMS

Do you currently own your own property?

Why are you looking to take a BTL when you have big debts? Is this a way of getting around traditional affordability checks for a residential property?

Many BTL lenders have a minimum income of 25k. Do you have this?

amnblog

sounds like you have a better use for your deposit

rachel23

Income £40k so seems not possible.

Property that has come up would be our ideal retirement property and very rare to come to market hence thought we could perhaps buy now and rent out for 15 years until retirement then move in.

I think we will have to let this one pass and work on our debts instead and hope another property comes up when we're in a stronger position.