BTL Mortgage Advice

MisterMotivated

Hi all,

After a couple of years of saving, I'm starting to look for a new BTL property. I have one at the moment (plus my own mortgaged home), that was bought about 10 years ago. However, due to a change in circumstances early last year, my salary is currently below £25,000 which seems to be the point at which most lenders are willing to consider offering a mortgage. If rent is taken into account, then my income is over £25k, but I don't have 2 years of tax returns as evidence. Can anyone suggest a lender that will consider lending for a BTL with sub £25k salary? The properties I've been looking at are around the £50-60k mark and the mortgage itself would be easily affordable even during voids, and easily covered by rent. My outgoings are relatively low, so I have a fair bit of surplus cash each month, but I remember when going through affordability assessment for my residential mortgage 2 years ago that the advisor told me my outgoings were too low, so they just used their own assumed figures (which were much higher).

Also, do credit card balances have a big impact on lending likelihood for BTL, or do they focus more on rent v mortgage? I have a stooze pot I'd prefer not to pay off if it can be helped.

ACG

Im not allowed to name lenders but there are a few lenders so you should have some options.

If you have not already, have a read up on the upcoming changes to BTLs and tax relief...you will soon be paying tax more or less on turnover rather than profit. And also you should be aware that there will be 3% stamp duty on a property purchase at that price point.

If you are struggling to find a lender, speak to a broker they can not only find the lenders who will accept you, but the better deals also.

MisterMotivated

Thanks for the reply ACG, I'll keep digging and see what I can find.

I did speak to a broker, but they weren't very helpful (spoke to them years ago and they weren't very helpful then either, so will try another)

Stamp duty has been factored in and my understanding is that tax relief will be limited to basic rate. I'm not a higher rate tax payer, so shouldn't affect me (unless I'm wrong).