ltd company mortgage advice

raps

Hi some advice please, here it goes:

1. I live in property 1 with my brothers family and my parents, which is a shared mortgage with my brother. The property has a residential mortgage of around £200K and is worth £500k.

2. My wife and I want to buy a property (property 2) to live in separately. We are looking for a property priced between £500k-600k. Can I change property 1 to buy-to-let and let it out to my parents and apply for a residential mortgage for property 2?

3. The other advice I need is - I have a fixed salary (PAYE) for 6 years (£50k annual before tax) and I was also doing extra shifts of the same job sector during the 6 years via my limited company (£10-15k annual before tax). Since August 2014 I have now gone full-time via my ltd company (£10k per month before tax) - how do I prove my salary and will I be able to get a residential mortgage with my full-time ltd company work?

4. my wife and I will do a joint mortgage and her scenario is similar but she does full-time PAYE salary (£58k before tax).

any advice much appreciated

Thanks

raps

anyone any advice please?

Annisele

This sounds to me like one for a broker. If you're prepared to do the legwork yourself, you *might* not need one - but you've got several complicating factors:

You want to let a property to family members. That means you can't have a standard BTL mortgage - because they prohibit letting to close family (i.e. parents). You'd need a regulated BTL instead, but fewer lenders offer those. It's also likely lenders would want your salary to be able to support both mortgages (unlike a standard BTL).

You presumably want to buy your brother out of the first house? Do you have cash for that, or will you be wanting to borrow to do so?

You've got less than a year of accounts with your limited company. That will *seriously* restrict the lenders available to you (possibly to zero, but I'm not sure about that).

Thrugelmir

raps wrote: »

2. My wife and I want to buy a property (property 2) to live in separately. We are looking for a property priced between £500k-600k. Can I change property 1 to buy-to-let and let it out to my parents and apply for a residential mortgage for property 2?

How much deposit are you proposing to put down?

If you let the 1st property then the income will be taxable. Have you factored this into your calculations?

raps

I am preparing to put a deposit down of around £150K for a property between £500k-£600k.

Will the lenders not look at my previous 6 year salaried pay?

Annisele

raps wrote: »

Will the lenders not look at my previous 6 year salaried pay?

Generally, no. You don't work for that employer anymore, so they're not paying you.

If it's in the same industry, some lenders might take your previous work into account when assessing if your £10k a month was likely to continue. Those lenders would generally be smaller ones who manually underwrite - in my view, a computer is going to give a resounding "no" to your situation. But even then, if you've only been working full time for this business for a few months you're going to really struggle to get anyone to take account of your income.

I think it's worth you seeing a broker, but not worth starting to househunt quite yet.