Buy to let advice

Hilldog

Hello,

I'm hoping that somebody can offer some advice regarding buy to let mortgages.

To give you a little background: I bought my own property just over a year ago, but have recently decided to move in with my partner who also owns her own place. I contacted my lender about this and was advised that I could apply for permission to let my own property but having done so, i've just had my request rejected. The provider sees my intentions as an 'investment' and have stated that I must change my mortgage to a buy to let if i want to rent it out.

Here's the catch, having looked on the lender's website for buy to let mortgages one of the requirements is that I earn over £25k per year. Unfortunately I earn just under £22k. Secondly, they request a 25% deposit - I placed a 15% deposit when I bought the property 1 year ago and don't have any other cash to put down. Is there any point enquiring with my current lender regarding a buy to let i.e. do they often waiver either of these requirements for current customers?

Failing that, is anybody aware of any other lenders for buy to let mortgages that don't ask for £25k wages and 25% deposit?

Thanks.

Hilldog.

turtleneck

Glad I'm not the only one with this problem, I decided to move in with a friend to cut costs and rent my property out. In doing so though I am committing mortgage fraud!! I tried to get consent to let and had the same outcome as you - they don't allow it for investment reasons! I dont see how moving in with a friend and letting my property out is really an investment reason? That left me with the option of converting to buy to let, which again could not proceed because I only earn £23k and they require £25k. I don't know what to do next!

Thrugelmir

turtleneck wrote: »

I dont see how moving in with a friend and letting my property out is really an investment reason?

You are operating the property as a business venture. A different perspective to calling it an investment. As it's the lender taking the risk not you. As your just using borrowed money.

turtleneck

For consent to let purposes what does it matter though? If I move away for work they will probably allow it, and take all the same risks?

bigsamih

Go and speak to a broker. They *might* be able to help. The equity you have is more important than your income.

Hilldog

As a bit of an update, i've been to see my lender who confirmed that I can't transfer to a buy to let as I don't meet the minimum earnings requirement. As such, i'm currently stuck between a rock and a hard place.

ACG

There is only 1 lender I know of who does 85% LTV BTL mortgages.

99% of brokers you will speak to wont know anything about it as its not openly advertised. In all honesty, I only found out about it yesterday.

GMS

Speak to a broker. Simple. You are putting yourself between a rock and a hard place currently.

Voyager2002

turtleneck wrote: »

For consent to let purposes what does it matter though? If I move away for work they will probably allow it, and take all the same risks?

No. If you move away for work and want to let your property you will be in exactly the same situation.

Thrugelmir

turtleneck wrote: »

For consent to let purposes what does it matter though? If I move away for work they will probably allow it, and take all the same risks?

CTL will only be granted on a temporary basis.

kingstreet

At some point, the word "investment" was dragged into proceedings. I suggest this has determined the output the way it has developed.

A suggestion of "work reasons" may have elicited a different response to a request for consent to let and the whole BTL issue would never have arisen.