Is there a Buy To Let Mortgage where I can just use rental income as guarantee?

pizza_lord

Hi I want to build a property portfolio with the cash I have from a recent house sale.

I have 720k in cash and I want to buy a few 1 bed flats and rent them out.

The plan would be to put down a deposit of say 25% of the value of the flat and get a mortgage to cover the rest. I don't have any regular income which is what a lot of mortgage lenders want to see. I want to use the rent on the flat to pay the mortgage with any shortfalls obviously being made up by me from the cash pool I have at my disposal.

Any mortgage lenders out there that would lend to me on this basis?

Pixie5740

Given all the latest changes being introduced for BTL landlords do you think it is wise to gear yourself so heavily?

David_White

I agree with the above note of caution.

Make sure you fully understand the implications of the BTL changes before diving into a new venture.

ACG

Pixie5740 wrote: »

Given all the latest changes being introduced for BTL landlords do you think it is wise to gear yourself so heavily?

There is a bit of a loophole in the changes where if you become a landlord througha limited company with 10 or 15 properties you can still claim back mortgage interest....Obviously double check and get proper advice but that is what I have been told.

With £700k, ok your probably not going to get to that amount soon but if its 10 you could do it and not be a million miles out.

dimbo61

You need to know what you are doing ! Where to buy ?
What to buy ? TAX implications
You are trying to start a business so get proper advice
Mortgage broker who deals in BTL, Letting agents, accountant, builder etc

amnblog

You can get away without regular income with some Lenders - speak to a good broker.

pizza_lord

amnblog wrote: »

You can get away without regular income with some Lenders - speak to a good broker.

Any you would recommend?

amnblog

We are not allowed to recommend brokers on this forum.

(unless they are paying MSE of course!)

pizza_lord

dimbo61 wrote: »

You need to know what you are doing ! Where to buy ?
What to buy ? TAX implications
You are trying to start a business so get proper advice
Mortgage broker who deals in BTL, Letting agents, accountant, builder etc

Either looking in UK or Monaco.

One or more one bed flats on a buy to let basis.

amnblog

Monaco ??? Slight curve ball

_CC_

ACG wrote: »

There is a bit of a loophole in the changes where if you become a landlord througha limited company with 10 or 15 properties you can still claim back mortgage interest....Obviously double check and get proper advice but that is what I have been told.

Basing long term investment or business decisions on a "loophole" is a bit risky.

The direction of travel is clear, the BoE and the treasury want to reduce BTL. Look at what has been introduced in the past 9 months - are you comfortable no other measures will be taken in the next few years which will further erode net income and capital gains?