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Can I get a buy to let on a property I own outright if I’m not earning?

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Hi all,
I’ve tried to research this myself but I’m struggling to find the answer and I know there are some real experts on here. I own a rental property outright as well as the house I live in with my young children. (Please don’t judge, I’m only in this amazing situation because my parents died when I was young). I am a single mum and as such only work as and when I can, around the children. I don’t earn much money and because of the rental property etc I’m (rightly) not entitled to any benefits. I really need to increase my income because I’m in debt and it’s growing. So I was thinking about taking out a buy to let mortgage on the rental property but can I with little income? I’d use the money to clear my debts and purchase another buy to let property - with a buy to let on it too. I was under the impression that you had to be earning £25k to get a buy to let but then I found out my elderly neighbour has just taken one out on her property and she lives off a very small pension, no where near £25k
Any clues? Can I get free financial advice? I don’t have the cash to pay for advice 🙈 

I don’t want to sell the buy to let as it’s what is paying my household bills at the moment. 

Any help, hugely appreciated. 
Lauren
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Comments

  • MovingForwards
    MovingForwards Posts: 17,149 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    How much is the BTL worth?
    How much rent are you charging your tenant?
    How much debt are you in?
    Any late / missed payments? Defaults? CCJs?

    You will need a good broker. Have a look through the posts and see if any of the brokers catch your eye, you can approach them but they cannot message you first.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • ACG
    ACG Posts: 24,555 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    There are lenders who do not have minimum income requirements of £25k.
    I dont really do BTLs so I  cant really point you in the right direction, but I know we have done them in the past for people on low incomes. You would need to be declaring the rental income to the tax man though.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thanks..
    The rental place is worth around £240k and I currently charge £860 a month. 

    I’ve been doing okay with my payments - up until lately. Work has dried up and having the kids here throughout lockdown has meant even less opportunity to earn. 
    All income is declared 😊

  • MovingForwards
    MovingForwards Posts: 17,149 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    @haras_n0sirrah may be able to give some insight into possible options, or you may wish to approach her directly.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • kazwookie
    kazwookie Posts: 14,266 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Sky blue thinking, why get your self into debt, when you have a property you 'could' sell and make your life so much easier.
    Why take on a mortgage when you already own the property outright?
    How much debt is there? and how much is it going up per month.?
    If you sold it you would have circ. £220K when sold, if you invested that, |(\i know interest rates are not brill atm)  and paid yourself say £1K per month, then you have enough for the next 17 or so years.
    I don't have the answers but good luck.
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  • The answer is yes - some lenders have no minimum income requirement

  • theoretica
    theoretica Posts: 12,691 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Thanks..
    The rental place is worth around £240k and I currently charge £860 a month. 

    I’ve been doing okay with my payments - up until lately. Work has dried up and having the kids here throughout lockdown has meant even less opportunity to earn. 
    All income is declared 😊


    The return you are currently getting on your £240k is not enough to make mortgage payments on an imaginary 25 year mortgage for £240k.  Unless you find a property (or properties) that give you a better rent for the value of the property than your plan doesn't look to me like it will work as you would need to pay too much of the rent to the bank.  I know this isn't what you asked, but if you are going to be a landlady I think you need to look hard at whether you have the right property.

    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • Thanks.. I wouldn’t want a £240k mortgage though.. I’m pretty sure you need a minimum of 25% deposit left on the property for a buy to let anyway, don’t you? I’d be looking to leave more than that anyway. 
    I’d ideally like to release some of the capital to purchase another property on a buy to let (so I have two therefore generating a little bit more income and owning two appreciating assets) I bought the original place for £160k so the yield is pretty healthy 😊
  • The answer is yes - some lenders have no minimum income requirement

    Anyone you’d recommend? 
  • kazwookie said:
    Sky blue thinking, why get your self into debt, when you have a property you 'could' sell and make your life so much easier.
    Why take on a mortgage when you already own the property outright?
    How much debt is there? and how much is it going up per month.?
    If you sold it you would have circ. £220K when sold, if you invested that, |(\i know interest rates are not brill atm)  and paid yourself say £1K per month, then you have enough for the next 17 or so years.
    I don't have the answers but good luck.
    Because I want to make my money work for me, not just spend it..?  In 17 years time I’d either have nothing, or an asset (Or two!) that has appreciated in value and has provided me with an income over that time. 
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