Buy to let mortgage for non-homeowner

99rb99

Hi, I am after a buy to let mortgage but one of the criteria of the mortgage providers seems to be that you need to own your own home. I live with my partner, and the house is his. I know there are companies out there that lend to non-homeowners, as articles have said so when I've searched online, but they don't name who the companies are.


I meet all the other criteria the mortgage company is after:-
I have the deposit.
I earn enough to make the repayments & council tax if it stood empty, etc.
I am looking to buy in a location where there is a need for landlords.
I fully understand about the new tax situation for landlords.
I used to rent out my old house, so have previous landlord experience.


Can anyone help? Who gives buy to let mortgages to non-owners. Thanks.

csgohan4

how much deposit do you have as you will need a lot higher since you are not a home owner


You need a broker for this.

99rb99

I've got 25% in cash, but if I can get something for a good price (which is what I am looking to do), then it could equate to an extra 5-10% of equity already within the new house (ie the difference between the buying price and the valuers price), so it may be 30 - 35% overall. Does that sound like enough or not?

Pixie5740

If you manage to buy somewhere under valuation then your LTV will be based on the purchase price not the valuation meaning you would still just have a 75% LTV mortgage.

99rb99

Ahhh, didn't realise that, so it's still 75%, I see.

stylus360

99rb99 wrote: »

Hi, I am after a buy to let mortgage but one of the criteria of the mortgage providers seems to be that you need to own your own home. I live with my partner, and the house is his. I know there are companies out there that lend to non-homeowners, as articles have said so when I've searched online, but they don't name who the companies are.


I meet all the other criteria the mortgage company is after:-
I have the deposit.
I earn enough to make the repayments & council tax if it stood empty, etc.
I am looking to buy in a location where there is a need for landlords.
I fully understand about the new tax situation for landlords.
I used to rent out my old house, so have previous landlord experience.


Can anyone help? Who gives buy to let mortgages to non-owners. Thanks.

Hi

Who are you looking to get a BTL with ?

99rb99

I've looked online at the t&cs for most of the high street banks, inc Halifax, Lloyds etc, and in their t&cs it says you need to be a home-owner

Prothet_of_Doom

Very few Lenders who do BTL mortgages don't stipulate that you need to own your own house. You could purchased jointly with your partner, and have a deed drawn up that you own 99.5% of it, but then you'd have to pay extra 3% stamp duty.

In the same way very few lenders will lend on HMO's if you are not an experienced landlord, and very few do LTD company mortgages.

kingstreet

There are BTL products for non-homeowners, but expect your personal income/affordability to be scrutinised so the lender can ensure you are not trying to get a "backdoor" residential.

You'll need an independent broker for full market overview.

Joy_mate

Hi.
There are some lenders out there in market, but you can access them via broker.
Kent reliance is one of them, who use to provide BTL mortgage via intermedieries with out own residential. (I don't know their criteria now)
What's ur purchase RANGE? In which area r u looking to INVEST?
These lenders will stress on the potential of letting in area, how much ur budget is and of course affordability stays at top.

fanheater

Hi,

I recently took a buy to let mortgage from Clydesdale Bank. I wasn't buying the property but converting from a residential to a buy to let. I don't have another property or residential mortgage.

My broker told me that only a few lenders are in the market for people in that position. Clydesdale was fine though. They gave me a decent rate and will also allow me to port my mortgage to a new residential property within the fixed term, so within the next two years. But if I take out a new residential mortgage with them they will combine the two at the residential rate.

Add to that that they allow you to overpay and then just ask for the money back (they call it Borrow Back, I think) and this turns out to an ideal mortgage for me.

Would recommend.