BTL mortgage required. No Proof of Income

crisp

Hi, I need a BTL mortgage for a £435,000 property purchase. I have 15% deposit and the funds for the additional costs.

I have a PPR mortgage (3 years), which has always been paid. I have a clean credit history.

I have NO PROOF of income as it is derived from different sources and varies.

Can anyone help?

carolt

Can you give us the details, crisp? Projected rent figures, do you have clean credit history etc?

greytroot

Chelsea were best for me, retired with very little income. Got £90k mortgage at £402 per month. Oh 2.5% charges though.

AndrewSmith

crisp wrote: »

Hi, I need a BTL mortgage for a £435,000 property purchase. I have 15% deposit and the funds for the additional costs.

I have a PPR mortgage (3 years), which has always been paid. I have a clean credit history.

I have NO PROOF of income as it is derived from different sources and varies.

Can anyone help?

It is perfectly possible to obtain a mortgage for such a purchase based entirely on the expected rental income/rental income assessment valuation.

The big question rather than whether you can prove income to cover it is whether the potential rental income will be enough to sustain a mortgage of £369,750. The monthly payments on this are likely to be around £1800.

What type of property is it and what is the rental potential?

Thanks

Andrew

Mr_helpful

Many B2L lenders either dont require a minimum income or allow you to self cert. The real sticking point is the rental since prices have been rising faster than rentals. Some lenders will let you rent on a room basis which may help the figures but you have to be careful of local HMO laws

herbiesjp

This should be possible as long as the rental income is enough to support the mortgage amount needed.

What are the "different sources" of income you have? And what does the income vary to, in terms of figures?

crisp

thanks for the replies.

a local agent has assessed the rental at £615 per week as a single unit, which seems reasonable and in line with local rates.

I started an application with C&G, but there have been several delays (on their behalf I should add). Firstly, they booked and cancelled my valuation twice which didnt look good. No reason or apology given.

Now they have asked that I get an accountant to confirm my income, which will take even more time and cost as I instruct one. My broker initially advised they C&G did not require this so the application would be quicker. I wouldnt normally mind but the vendor has stubbornly refused to remove the property from the market, hence the pressure is on.

my income is derived from consultancy work, savings and investments. My earnings are more than £25k.

beingjdc

crisp wrote: »

Hi, I need a BTL mortgage for a £435,000 property purchase.

Want, you want a BTL mortgage

The yield seems to stack up, so you should be able to find someone - but the income is a challenge - if you're relying on £610 a week in rental income, and you're earning (if I understand you correctly) an average of about £400 after tax, then someone letting you self-cert is likely to want to see good evidence that you have a further cushion to protect you if there's a hiatus (e.g. six weeks with no tenant).

theGrinch

C&G seem to be quite slow at the moment. I have had the same problems.

dunstonh

Firstly, they booked and cancelled my valuation twice which didnt look good. No reason or apology given.

Not C&Gs fault as they dont do the valuation.

Now they have asked that I get an accountant to confirm my income, which will take even more time and cost as I instruct one.

No surprise really given the scale of the borrowing and the way that rental income is increasingly not covering monthly mortgage payments. Lenders are increasingly being encouraged to verify data being given to them and the value of the property and your lack of provable income and it being insufficient to justify a mortgage in its own right means the C&G are acting responsibly and checking the data you have given them.

crisp

dunstonh wrote: »

Not C&Gs fault as they dont do the valuation.

actually it is. they instruct the survey. then they cancelled it. instructed it and then cancelled it. if I am the customer and I am paying £1000 in fees plus £950 for the survey I expect it to be done efficiently and effectively, not as if it is amateur night.

I havent disclosed my income on the board.