Help with poor credit score

sparkey1

Hi,


If I understand correctly you don't own property at the moment but you are looking for a BTL.



A lot of lenders wont lend to you if you dont own you own property. Let alone you having a default. So you need a decent broker.



As Jimbo 26 says"Paying it off will look better to a potential lender" However if the account is still open following the default, dont close it, just pay it off.



Also are you aware of Clause 24 and how it affects your tax. If the figures dont stack up you could come unstuck.

[Deleted User]

Lenders won!!!8217;t loan to you unless you own a property?

Where have your dreamt that up from?

sparkey1

Not dreamed up at all. However I am glad you have asked, as the details below may be of use to the original poster, or someone else.

Firstly, It is widely known that a lot of lenders will not lend to you unless you have a residential mortgage. Likewise many have a criteria that you must be earning 25K per year. More often than not, the 25K cannot include rental income. For joint applications, some will if at least one person is a home owner. Not all applicants have to be for joint mortgages.

Two high Street names that will are Natwest and Barclays. They will lend to people without existing property, Barclays need you to be at least 21 yrs of age.

Looking at the major BTL providers. The following wont.

BM Solutions - First Time Buyers are not eligible for Buy to Lets or Let to Buys. All other applicants must either currently own a property in the UK or have previously owned a property in the UK which can be evidenced with land registry. See https://www.bmsolutions.co.uk/criteria/

The Mortgage Works wont, unless you are partnered with someone that owns a property. See http://www.themortgageworks.co.uk/lendingcriteria/general#applicant-definitions

Santander - At least one applicant must own the residential property which they live in. See https://www.santanderforintermediaries.co.uk/products-and-criteria/buy-to-let/

Accord wont either - Unless you own the house you say you live in.

Virgin Money who insist you must have owned your own home for six months - https://uk.virginmoney.com/virgin/mortgages/buy-to-let/

Paragon - Again No to first time buyers. https://www.paragonbank.co.uk/intermediary-faqs

HSBC - Applicants must be an owner occupier of a residential property which they have lived in for at least 6 months. See http://www.intermediaries.hsbc.co.uk/criteria/buy-to-let-lending-criteria.html

Lloyds - They wont if you dont own property already. See https://www.lloydsbank.com/mortgages/buy-to-let/getting-started-guide.asp

Aldermore - Same story. See https://intermediaries.aldermore.co.uk/lending-criteria

Hope this helps