Buy to let mortgage availability to non homeowner

nomaddjs

Hello,

I am looking to find out whether it is possible to find a lender who will provide a mortgage to a non homeowner on income from employment less than 20,000 annually.

I have been a homeowner as recent as December 2015, it has now been sold and will fund a deposit of 30-40% on a new property based on house price of £90,000-120,000.

I know that nat west provide buy to let mortgages to non homeowners but seemingly minimal requirement is 20,000, and there are lenders that will lend on income above 25,000.

I have had a quote from one broker on interest only mortgage at 3.99% which seemed quite steep.

Please advice needed urgently. I am based in Scotland, so I don't know if that restricts the pool of lenders

frazell

I think that initially you might be better off buying the property as your main residence and then getting permission to rent from the mortgage company.

David_White

nomaddjs wrote: »

I have had a quote from one broker on interest only mortgage at 3.99% which seemed quite steep.

Considering you're not a homeowner and have an income less than £20k you're not likely to be in a position to ask for market leading rates.

AnotherJoe

nomaddjs wrote: »

Hello,

I am looking to find out whether it is possible to find a lender who will provide a mortgage to a non homeowner on income from employment less than 20,000 annually.

I have been a homeowner as recent as December 2015, it has now been sold and will fund a deposit of 30-40% on a new property based on house price of £90,000-120,000.

I know that nat west provide buy to let mortgages to non homeowners but seemingly minimal requirement is 20,000, and there are lenders that will lend on income above 25,000.

I have had a quote from one broker on interest only mortgage at 3.99% which seemed quite steep.

Please advice needed urgently. I am based in Scotland, so I don't know if that restricts the pool of lenders

From what I've seen quoted here 3.99% for a BTL mortgage is low.

nomaddjs

Thanks for your responses.

AnotherJoe wrote: »

From what I've seen quoted here 3.99% for a BTL mortgage is low.

Search so far seems to suggest that this is a reasonable rate from what we've seen. However, my understanding was that if you put in a large deposit (30-40%) the rate would drop significantly. At the moment looking at possibly getting 2.99% with 40% mortgage, will find out on Thursday if it's doable.

David_White wrote: »

Considering you're not a homeowner and have an income less than £20k you're not likely to be in a position to ask for market leading rates.

Again comes back to the first broker we've spoken to who mislead us by suggesting we may qualify for 1.29% rate but it was totally wrong. He has since offered a rate of over 4%.

frazell wrote: »

I think that initially you might be better off buying the property as your main residence and then getting permission to rent from the mortgage company.

Not sure where would we stand here from ethics point of view. Also doesn't rate shoot up when you apply for said change? Certainly when we enquired about this, people suggested this was borderline fraud - applying for residential mortgage when you have no intention to ever reside in it.