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Mortgage guaranteed by ISA
eloy7
Posts: 116 Forumite
I am self-employed, and my income is not a sort preferred by lenders. Particularly, it is unstable because of the pandemic. However, I have sufficient saving in my ISA account (invested as stocks).
Can I use my ISA saving as a guarantee to get the mortgage without providing proof of income?
If yes, should it be equal to the price of the house or can it be say 50% of the money borrowed? Can I use this scheme (if possible) for buy-to-let?
Can I use my ISA saving as a guarantee to get the mortgage without providing proof of income?
If yes, should it be equal to the price of the house or can it be say 50% of the money borrowed? Can I use this scheme (if possible) for buy-to-let?
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Comments
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It's not clear, are you looking for a resi purchase or a BTL purchase? Neither will consider the ISA funds in place of income but for BTL there are lenders who may consider affordability based on rental income alone with no minimum personal income subject to meeting other background criteria.
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Do you have other savings to fund the deposit, SDLT and legal fees etc. or is everything in the ISA?eloy7 said:I am self-employed, and my income is not a sort preferred by lenders. Particularly, it is unstable because of the pandemic. However, I have sufficient saving in my ISA account (invested as stocks).
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Can I use my ISA saving as a guarantee to get the mortgage without providing proof of income?
No. It isn't possible to put a charge against an ISA.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Sorry, I was not clear. I meant using ISA as a guarantee for the mortgage. I have money for the fees, and possibly a 20-50% down payment.MWT said:
Do you have other savings to fund the deposit, SDLT and legal fees etc. or is everything in the ISA?eloy7 said:I am self-employed, and my income is not a sort preferred by lenders. Particularly, it is unstable because of the pandemic. However, I have sufficient saving in my ISA account (invested as stocks).0 -
Your ISA is not a guarantee of anything . You could empty it and spend the proceeds on a new car or world cruise next week.eloy7 said:
Sorry, I was not clear. I meant using ISA as a guarantee for the mortgage. I have money for the fees, and possibly a 20-50% down payment.MWT said:
Do you have other savings to fund the deposit, SDLT and legal fees etc. or is everything in the ISA?eloy7 said:I am self-employed, and my income is not a sort preferred by lenders. Particularly, it is unstable because of the pandemic. However, I have sufficient saving in my ISA account (invested as stocks).0 -
eloy7 said:
Sorry, I was not clear. I meant using ISA as a guarantee for the mortgage. I have money for the fees, and possibly a 20-50% down payment.MWT said:
Do you have other savings to fund the deposit, SDLT and legal fees etc. or is everything in the ISA?eloy7 said:I am self-employed, and my income is not a sort preferred by lenders. Particularly, it is unstable because of the pandemic. However, I have sufficient saving in my ISA account (invested as stocks).As K_S said, you may have some BTL options with a deposit of that sort of size, but you will not get anything residential without income...Even the BTL may have problems if this is your first BTL property and you do not already own a residential property.I'd suggest you contact a suitable broker and go though the options in detail, especially the self-employed income situation, you may have options to use that with some lenders but you probably need a broker that specializes in self-employed.
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