Is it possible to get a mortgage whilst not employed?

Chris_Preston

My partner owns 7 properties to the value of around £860,000 with buy-to-let mortgages on 5 of them to the value of about £370,000. She also has savings of £60,000. She has just recently given up her job. I have a small business that is in its first year and so cannot prove any income.

She has seen a property at £115,000 that she wants to buy but has been refused a mortgage because she is no longer employed. She desperately wants this property.

Can anybody help, please?

Thanks in advance.

Chris Preston

Leon_W

Well

She could remortgage one or a couple of the Buy To Lets in order to raise the purchase price outright.

She must also be deriving some sort of income from them also ? She could be a self employed landlord could she not ?

If she is buying it to let out then I can't see a problem with a good deposit. If buying it as a residential then maybe a bit of lateral thinking is required as it is possible to obtain mortgages for day one self employed.

Edit. Surely the easiest route would be to remortgage one of the unencumbered B2Ls ??

dunstonh

Your partner must surely be classed as self employed with 7 properties owned on a buy to let. She is a professional landlord, not unemployed.

One assumes that she running a cash book to show income and expenditure for running this business for tax purposes. She needs the documentary evidence to satisfy HMRC so that works the same with the lenders.

chodges84

dunstosh,

My thinking exactly. How long has your partner owned these properties? It sounds like she could owe a lot of tax on the rent.

I'm no expert, but I would have guessed that if she shows her mortgage lender a copy of her last set of submitted accounts from her tax return this would suffice as income, and I would guess she would have 3 sets of accounts.

If she doesn't, she's up the creek and could face a hefty tax bill.

Chris_Preston

Thanks everyone.

Following a conversation with her existing lender, it seems she is eligible for an 'extended criteria' buy-to-let mortgage on one of the unencumbered properties as she is an 'experienced landlord' and they are not interested in her employment status.

Regarding the tax situation, she has an accountant and everything has been declared properly.

Regards

Chris Preston

Mr_helpful

Chris_Preston wrote: »

Thanks everyone.


Regarding the tax situation, she has an accountant and everything has been declared properly.

Regards

Chris Preston

She is self employed as she still has the properties and their income so should have no troble with companies like Mortgage Express who have no minimum income requirements

PasturesNew

And with properties of £860k, she must have an income of £40-70k/year from rents
More than enough to raise £115k