Buy-To-Let as a Self Employed

kabakanie

Hi,

I would like to take mortgage to buy the property and start make some money out of this, however I'm unsure if Im eligible for mortgage being on low income.

I'm self-employed for 4 years.
So Basically I'm planning to buy property as form of investment worth around 80-100 k, I manage to have deposit of 15k (However I can borrow another 20k from my brother) So I possibly(if needed) got 35k as a deposit. Also I'm self employed for 4 years and I normally got around 10k/a year income after all expenses, so as you see my income is really low, I'm wondering if that does matter when it comes to "buy to let" mortgages.

I'm a minimalist and my cost of living are super little, only around 400 a month. Also with profitable expenses against my tax leave me with 6-8k saving money a year. The property I would like to buy it would give me at least approx 10% yield .

When I wanted to get mortgage for first time buyer the bank didn't want even talk to me with my low income, so I'm wondering if the situation is different with buy to let mortgages.

Could you give me advise what steps I should take, name of the best lenders which would not be bother about my income ?

Thank you

Thrugelmir

Income is far too low with no residential property as security either. You'll struggle to meet lenders criteria.

Leon_W

Thrugelmirs right OP.


If you are not already a home owner then the mortgage will be pretty much assessed on your earned income which isn't enough.


Lenders view people looking for BTL mortgages who are not already homeowners with a great deal of suspicion. Most of the time they are right to do so as judging from enquires I get a lot are just trying to beat the system and live in the property themselves. Gaming they call it. Type "buy to let" and "gaming" into Google. Interesting stuff.

jayson043

You really want to take that risk. Your income is too low and your deposit ( your own money) is too low. Either reduce your property spend or save at least 25% deposit plus you need a further 10%+ cash buffer in case for example the btl mortgage company wants you to reduce the ltv ratio amongst other things.

kabakanie

This is amazing, because I would do rather other way around - buy property as first time buyer and rent it out. Never thought about gaming.

In this sort of scenario when you are saying there is no chance to get mortgage my question is :

As a self employed how much income do I need to show to be able to get mortgage - doesn't matter if is first buyer or buy to let ?

As I've said in most of situation I'll have at least 20-30% deposit....

Other way to do is perhaps to start buying small properties for a cash.

amnblog

A minimalist capitalist? That's a first.


Both Leon & Thrug are right here.