BTL Mortgage

Jambo5

Hello guys. I have a query on BTL and credit reports.
If you have seen my other post you will know its not the best.
So here it goes.

We are wanting to buy a house some 350 mile away to move her home as I am in forces. But I got advised that her income could not be included as its to far to commute.
Which is a shame as her CR is perfect, I was hoping it may pull my not so perfect CR through the application.

We are on track to have 10k deposit by the summer, saving 1k per month. Income combined is 44k.

We figured if we could wait to Easter 2016 then we would have closer 20k saved(if things went to plan)

My questions....

Would both our incomes again count if we BTL back home 350 mile away?

As its a BTL would they let us buy a house that far away or will it have to be in current place?

I read somewhere that its a 20% deposit for BTL, is this so?

And I know from you guys the bigger the deposit the better, a few people have said that a 20% dep will get me other the line with bad credit, I was wondering if this applies to BTL? Or are they even stricter?

Basically if I wait till April/May next year the last of my late payments would have fell off. Providing I keep everything green till then(which I should, I have DD on everything) then all I shall have left on my report will be PDLs which by then will be 4 years old.

There is a lot going through my mind right now. I think with my job they are gonna keep me up here at top of Scotland. At wife doesnt want to leave me so I think we just want to get on ladder. Even a 80k terrace house and a 20% deposit of 16k would do nicely. While someone put money into that house we could still benefit from our very low rented Married Quarters.

Any advice at all would be great, Happy Friday

Jambo5

Just read...its 25% deposit needed. And some bankers wo t except FTB for BTL.

Come on guys you have the wealth in knowledge.

Jambo5

Is it possible from a Distance?
Are lending criterias more relaxed or tightened?

Come on experts. You have been so right so far.
Figure an investment mortgage could be a good thing.

ACG

BTLs typically need 25%. Trying to do it with less will limit you to maybe 3-4 lenders. I believe one of those will do it for first time buyers but you will need 20% deposit.

Buying a distance away wont matter as its not your residential.

At 80% LTV criteria will definitely be tightened. Also as its a BTL criteria is tighter than a residential 80% mortgage.

Jambo5

Ok thank you. Was just wondering as I thought the better the deposit the less risk. Just wondering if that was same for someone with credit like mine.

Either way this could be a step on the ladder. Seen a property where we are from. 50k terrace. Its being rented at 400pcm.

If we had 12,500 deposit we could get a fix rate for 5 years with Natwest for £189 per month. Got my mind working(for once).

But with my credit...although its becoming historic...i probs wont qualify

On_my_way

I am just investigating this as I would like to do BTL in a ew years.

I think you need to go and see a broker and see what they say.

Good luck