BTL with low income

smallblueplanet

HappyMJ wrote: »

If you sold her half your house and put her on the mortgage she would then become a home owner and eligible for a BTL mortgage without needing an income of her own.

*hopping on OPs thread* So would someone with no paid employment (ie houseperson) but with cash for a deposit and a joint mortgage on a residential property, be eligible for a BTL?

amnblog

With the right lender and subject to other criteria, yes.

smallblueplanet

amnblog wrote: »

With the right lender and subject to other criteria, yes.

What other criteria might come into play, thanks.

ViolaLass

ACG wrote: »

At the moment there can be tax benefits.

In all circumstances? If you can afford not to borrow (and therefore not pay interest), isn't that better than borrowing and getting a 20% reduction on the interest? (assuming that the borrowing rate would be higher than a savings rate, which is generally true)

I concede your point about freeing up capital for another purchase but the OP didn't mention wanting to do this.

ACG

I suppose it depends.
Can that money be pulled out to earn a better return.

Its all about the figures and there are endless variables. To try and give a definitive answer is impossible. Like any investment the person taking the risk needs to do their research.

amnblog

smallblueplanet wrote: »

What other criteria might come into play, thanks.

My business partner refers to mortgage underwriting as a prism.

It looks different from every angle.

I could list dozens of things that may or may not apply to you, each with a different set of policies shown by each Lender.

If you are serious about your purchase get advice from an Accountant and a mortgage broker.

stalbi

Hi
Do the proposed rax changes affect limited company property as well as private individuals?
Thanks

ACG

Yes, but there are potentially ways to offset that to some degree as a limited company.

As amn says, speakng to an accountant is a good idea. Spending a few hundred or advice now could say you a lot in the future.

LateStarter

As mentioned, she could potentially buy it for cash, but it would use require her to commit everything financially. She would much prefer to have some accessible savings in the bank for a rainy day, but I guess you can't have everything.

If she buys for cash, would it be possible/easier to get a BTL mortgage afterwards?

amnblog

Not immediately, most (but not all Lenders) required 6 or 12 months ownership before they will accept a re-mortgage.