Buy to save schemes after Debt/Buy to let

On_my_way

I meant Save to Buy Schemes in the title and now can't change it!


Dear All,

Please could I have some help.

I am soon to end my debt journey hopefully never to get back on it! I have a debt management plan and my defaults will fall off my file in December 2015.

I live with my fiance (we got engaged on NYE!) in his house which he has a mortgage on.

I would like to buy a buy-to-let flat in my own name so that we both own property in our own right.

Is it possible to:

* Join a save to buy scheme following debt and default
* Do save to buy schemes provide mortgages for buy to let

Sorry if the question is ridiculous - I just need some help please!

Thanks very much for reading.

ACG

* yes
* no

You can do but not for a BTL. There is only nationwide who do it as far as im aware. Its not worth going out of your way in the hope you can get a mortgage with nationwide.

For BTL in the main you need a 25% deposit, possibly 15-20% but with a DMP I think your going to need 30% minimum.

Get your credit reports and speak to a broker - you can give you some direction and a plan of action.

kingstreet

No. You'll need 20% deposit or more for a BTL and normally have to be a homeowner already, although there may be one or two lender options for those with a good credit history who don't with more deposit.

What remains visible on your credit files will determine if this is a possibility. BTL is based on a clean history, so anything still visible will make this a non-starter.

On_my_way

ACG wrote: »

* yes
* no

You can do but not for a BTL. There is only nationwide who do it as far as im aware. Its not worth going out of your way in the hope you can get a mortgage with nationwide.

For BTL in the main you need a 25% deposit, possibly 15-20% but with a DMP I think your going to need 30% minimum.

Get your credit reports and speak to a broker - you can give you some direction and a plan of action.

Thank you! I wouldn't start anything until December 2015 when my defaults fall off and I am not paying any debt.

On_my_way

I know of a couple who had a slightly difficult credit history- they got a normal mortage with every intention of letting it then came clean about it and changed the mortgage to BTL.

Is that even possible?! I would obviously be honest from the start. I will be able to save 20-30%

Thrugelmir

On_my_way wrote: »

Thank you! I wouldn't start anything until December 2015 when my defaults fall off and I am not paying any debt.

A DMP is far worse than merely having defaults registered. You'll live with the consequences of a DMP for a while longer yet. Your priority should have been to clear your DMP as quickly as possible rather than focus on the default dates. A very common misconception I'm afraid to say.

On_my_way

Thrugelmir wrote: »

A DMP is far worse than merely having defaults registered. You'll live with the consequences of a DMP for a while longer yet. Your priority should have been to clear your DMP as quickly as possible rather than focus on the default dates. A very common misconception I'm afraid to say.

Thanks for your response. I will be clearing my DMP long before it formally finishes.

It doesn't really matter whether I get a mortgage for a BTL now or in 5/10 years time. It's just interesting to know where I stand.