Self Employed First Time Buy to Let Morgage.... Phew! 30k Deposit

OCTOBERS_VERY_OWN

Hello,

I'm 22 and want to get on the property ladder, I want to buy a 100k property I have 30k to put as a deposit and I would have to get a mortgage for the rest. I want to buy to let the property to get additional income.

However... I'm self employed and my income varies month on month and because of my age I don't have many accounts, perhaps two years that I filled my self that don't show much profit at all (as I'm young I spent it all on flashy cars etc)

I've paid of my credit cards, and I have a car loan that would be more than a mortgage that I always pay off - that I would sell and just use my second car. I want to get sensible and build an income for myself.

How can I get a mortgage when I'm a first time buyer? It seems impossible people I've spoken too just go oh no self cert mortgages don't exist any more.

Any advise?
Are there any private lenders out there?

The deposit is large it would almost be in their interest for me to default.

csgohan4

you generally need 2-3 years of SA302 (proof of income via tax returns) or company accounts, but usually the former. You need a salary and dividends which will be averaged and then multiplied by 3.5-4.5 depending on lender. Your outgoings will be subtracted from your income such as loans e.t.c.


Have you looked at your own credit history with all 3 credit agencies, ignore the scores, it's useless. Do you have CCJ's, late payments e.t.c?


I would advise using a broker to examine your personal circumstances.


Good luck

silvercar

Getting a buy to let mortgage as a first time buyer is difficult. Few lenders will do this because of the risk that you are getting the mortgage to be based on rental level rather than personal income and will live in the property yourself. Also lenders are wary of people becoming landlords who have never had to consider maintenance of a property as owners. I think you will struggle to find a lender even with your very decent deposit.

HappyMJ

OCTOBERS_VERY_OWN wrote: »

Hello,

I'm 22 and want to get on the property ladder, I want to buy a 100k property I have 30k to put as a deposit and I would have to get a mortgage for the rest. I want to buy to let the property to get additional income.

However... I'm self employed and my income varies month on month and because of my age I don't have many accounts, perhaps two years that I filled my self that don't show much profit at all (as I'm young I spent it all on flashy cars etc)

I've paid of my credit cards, and I have a car loan that would be more than a mortgage that I always pay off - that I would sell and just use my second car. I want to get sensible and build an income for myself.

How can I get a mortgage when I'm a first time buyer? It seems impossible people I've spoken too just go oh no self cert mortgages don't exist any more.

Any advise?
Are there any private lenders out there?

The deposit is large it would almost be in their interest for me to default.

You know you'll get 3% on £20,000 of your £30,000 deposit if you just put it in the bank. Much easier investment....and so much less risky.

Do you rent a property of your own?

Icequeen99

OCTOBERS_VERY_OWN wrote: »

Hello,

I'm 22 and want to get on the property ladder, I want to buy a 100k property I have 30k to put as a deposit and I would have to get a mortgage for the rest. I want to buy to let the property to get additional income.

However... I'm self employed and my income varies month on month and because of my age I don't have many accounts, perhaps two years that I filled my self that don't show much profit at all (as I'm young I spent it all on flashy cars etc)

I've paid of my credit cards, and I have a car loan that would be more than a mortgage that I always pay off - that I would sell and just use my second car. I want to get sensible and build an income for myself.

How can I get a mortgage when I'm a first time buyer? It seems impossible people I've spoken too just go oh no self cert mortgages don't exist any more.

Any advise?
Are there any private lenders out there?

The deposit is large it would almost be in their interest for me to default.

Are you saying your declared profit was low because you spent it on flashy cars - i don't understand how the spending on cars has anything to do with the profit figure - you can't deduct it from what you declare so your profit should be your actual profit before you started spending it.

IQ

OCTOBERS_VERY_OWN

I checked my last self assessment on HMRC's website I earnt 26k.

I have no bad credit, always paid my bills on time, there is only one mark on my credit report about 6 months ago as I canclled an EE contract and paid the full amount but the bank refused it so it went to a debt agency but I paid it straight away as that was the first I heard of it.

Seems impossible in my situation if I had a "normal" job then I'd' have no problem. I don't have 3 years of accounts at max 2.

ExpertAdvice

If your figures (as per SA302) for the last 2 years are above £25K, then its possible to get BTL as a FTB. However, only 1 or 2 lenders would do it.

Caz3121

OCTOBERS_VERY_OWN wrote: »

if I had a "normal" job then I'd' have no problem

I don't think that is the case - as has been said, getting a BTL when you don't already have a property is not something most lenders do

OCTOBERS_VERY_OWN

I found out the issue, it's because I don't already own a property lenders assume Buy-to-Let on a first time mortgage is simply to move in yourself.

The solution is to get a normal mortgage and live there for a year then apply for a change.