Can I get a mortgage?

fizzydrink

Hello,

Wanted to get some background knowledge / feeler opinions before I start ringing around.

I've recently started contracting (1-2 months ago) and won't be taking a salary this year for tax efficiency.

I'm an existing buy-to-let property investor, and am renting-to-live. I'd like to invest in another property - either buy-to-let or for myself - whenever I can, though sooner is preferred. I imagine the property would be in the range of £350k - £450k.

Is it possible for me to get a mortgage?
eg. Yes, but max LTV is 50%; or rent needs to cover 130% of mortgage payments; or I need to work for 1 year as contractor; etc.

Thanks in advance.

HappyMJ

OK...you're pretty much there.

Yes, but your taxable profit/salary from your business needs to be at least £25k or above. You need to be able to prove this for at least the last tax year preferably two tax years.

and...the rent needs to cover the interest (not the repayments) on the mortgage. LTV depends on the lender and really that will be limited by the rent as the higher the LTV the higher the interest rate and the more rent you'll need to cover the interest.

fizzydrink

Will lack of accounts from my current work definitely prevent me from getting a buying-to-live mortgage, even if I'm able to put down a large initial payment?

ACG

As an existing landlord, I think this could be done up to 75% LTV assuming the rental calculation fits (125% at 6% on interest only)