Buy To Let Mortgage advice....

GadgetGuru

I have a 3 bedroom house, which is now mortgage free. Hence I have decided I would like to plough my savings into a second property as a Buy To Let investment.

I am looking for a 2-3 bedroom property around the £300k mark, so would need around a £75k deposit, and obviously extra for stamp duty and other such fee's....

Is it possible to purchase a property in my wife's name (as her first property and first time buyer) and place her as the owner, but then get the Buy To Let mortgage under my name?? Or does it need to be under the same time as the property owner?

Reason being she does not work so probably wouldn't be able to get a mortgage even if its buy to let?

The other option is to place the house under both our names as joint ownership, and then get a joint buy to let mortgage?

Just to add to the mix, I am an IT contractor. My current contract began in Feb as is a 3 month rolling contract. It has been extended by another 3 months once already, which ends in August, but I am certain they will continue to roll the contract over for another 3 months, for the foreseeable future (they have contractors who have been there 4 years or so!!). Will this make getting a Buy To Let mortgage any more difficult?
I have been operating under my own LTD status since April.

dimbo61

You as a couple can buy the property with her owning say 90% and you owning 10% but the mortgage (BTL) would be in both names.
She does not work and you are a contractor is a bigger problem.
One for the brokers

Thrugelmir

IftiBashir wrote: »

Reason being she does not work so probably wouldn't be able to get a mortgage even if its buy to let?

An income is required in case the property doesn't generate an income for some reason. Negative scenarios have to be considered as well. Letting property isn't like owning an ATM machine that simply dispenses money.

GadgetGuru

Thrugelmir wrote: »

An income is required in case the property doesn't generate an income for some reason. Negative scenarios have to be considered as well. Letting property isn't like owning an ATM machine that simply dispenses money.

Nobody said it was - and precisely why I was asking whether it would be better for us to go jointly.

pathtofreedom

Are you aware of the extra stamp duty charges on 2nd homes as that will greatly increase your startup costs. What are your sums like for voids, insurance, taxes etc etc. Depending on your daily rate with the tax changes is it worth doing this or does the business plan include enough cash flow to cover repairs, voids, costs if you have gaps in contracts in the future?

GadgetGuru

pathtofreedom wrote: »

Are you aware of the extra stamp duty charges on 2nd homes as that will greatly increase your startup costs. What are your sums like for voids, insurance, taxes etc etc. Depending on your daily rate with the tax changes is it worth doing this or does the business plan include enough cash flow to cover repairs, voids, costs if you have gaps in contracts in the future?

Hi.
Yes Ive already covered and accounted for all of the added costs. It was just the mortgage side of things that I was a little confused with.
Have booked an appointment with a broker and will see how that goes

amnblog

Your wife has no property, and no income?

A smart broker will tell you to forget it and make a joint application.