Do all BTL mortgages have income requirements?

ijrwe

Income from some source completely independent of the property, e.g. a salary normally.
It's something that only some of them mention (often 25k p.a. is required) and the others don't address, but I suspect they might require it as well.

I own one house, am keen to acquire other local properties for BTL purposes, and am in perhaps an unusual financial situation:

Official salary: less than 12k
Current mortgage outstanding: 35k
Equity in house: 90k
Cash savings: ~70k


My current mortgage payments are just 20% of my monthly income, and in fact are completely covered by a lodger as well (but I don't think banks will take that as proper or reliable income)


When I asked about borrowing more on my current mortgage (see that the current LTV is very low) and told them my salary he actually laughed and asked what it really was! Awkward.

Am I basically stuck by this low salary, do you think?

marksoton

Well yes.

And even with your savings it's not a great deal of money for BTL purposes.

theartfullodger

No: e.g. I got a B2L mortgage a couple of years ago and have absolutely no salary...

I do however have pensions that satisfy most lender's requirements.

ijrwe

theartfullodger wrote: »

No: e.g. I got a B2L mortgage a couple of years ago and have absolutely no salary...

I do however have pensions that satisfy most lender's requirements.

Original post edited accordingly...

Cakeguts

You have to be able to pay the mortgage on the BTL property if you are not getting any rent. Could you still afford the BTL property if you had a problem and the tenant didn't pay rent and then left the property needing extensive repairs? Can you afford the repairs with your income? BTL is a business and you need capital over and above what you put into the BTL properties. You can't run this business on the cheap it isn't fair to your tenants.

superdudeo

ijrwe wrote: »

Income from some source completely independent of the property, e.g. a salary normally.
It's something that only some of them mention (often 25k p.a. is required) and the others don't address, but I suspect they might require it as well.

I own one house, am keen to acquire other local properties for BTL purposes, and am in perhaps an unusual financial situation:

Official salary: less than 12k
Current mortgage outstanding: 35k
Equity in house: 90k
Cash savings: ~70k


My current mortgage payments are just 20% of my monthly income, and in fact are completely covered by a lodger as well (but I don't think banks will take that as proper or reliable income)


When I asked about borrowing more on my current mortgage (see that the current LTV is very low) and told them my salary he actually laughed and asked what it really was! Awkward.

Am I basically stuck by this low salary, do you think?

I am close to getting a mortgage agreed and I am in a similar situation as you. My income has dipped this tax year because starting new business.

However, what may be different is that I already have two buy to lets so they could consider me a professional landlord or such like.

Still, my income is not much more than you this tax year. There are a couple of lenders with no minimum income requirements. Unfortunately, like you, lodger income does not count or I may be close to getting to that 25k mark.

kingstreet

Lenders who have no minimum income requirement still have built-in affordability tests designed to ensure coverage of the borrower's residential mortgage as well as the BTL.