Can I get a BTL mortgage?

longleggedhair

I wonder if any of you would be able to advise me. It’s an unusual situation, I currently own my house  (value £400K) and have quite a bit invested (£300,000) however my income is limited due to disability. I get contribution based ESA & PIP, a total of probably £12,000 PA.

I have seen a house I want to buy as a BTL (my first) the house is around £450,000. I could put down £150,000, more if required to secure a mortgage, but with my limited income would I be able to get a BTL mortgage? Thanks.

kingstreet

It should be possible. Get some broker feedback before proceeding.

However, questions may be asked if the BTL costs more than the value of your home as this is an indicator of possible scheme abuse (buying a property to live in using a BTL mortgage.)

coypondboy

how on earth do you get 12k pa benefits with 300k in savings?

MWT

coypondboy said:

how on earth do you get 12k pa benefits with 300k in savings?

Not everything is 'means tested', and a bit off-topic to be asking...

longleggedhair

coypondboy said:

how on earth do you get 12k pa benefits with 300k in savings?

By working hard for many years and paying NI contributions until you become so poorly you can’t work any longer, and putting money aside while your able to work because you know you won’t be able to work forever due to a degenerative condition.

housebuyer143

coypondboy said:

how on earth do you get 12k pa benefits with 300k in savings?

Because your main residence is excluded from benefit calculations as income or savings and rightly so. 

Neilos9

housebuyer143 said:

coypondboy said:

how on earth do you get 12k pa benefits with 300k in savings?

Because your main residence is excluded from benefit calculations as income or savings and rightly so. 

Would that not be equity as opposed to savings though......

born_again

coypondboy said:

how on earth do you get 12k pa benefits with 300k in savings?

Not on topic. But PIP (not means tested) is over 3/4 of that amount. 

housebuyer143

Neilos9 said:

housebuyer143 said:

coypondboy said:

how on earth do you get 12k pa benefits with 300k in savings?

Because your main residence is excluded from benefit calculations as income or savings and rightly so. 

Would that not be equity as opposed to savings though......

Yes, equity isn't taken into account for benefits either. Would be grossly unfair to give someone no support because they own the house they live in, especially when they have no likely way to access that money.

Neilos9

housebuyer143 said:

Neilos9 said:

housebuyer143 said:

coypondboy said:

how on earth do you get 12k pa benefits with 300k in savings?

Because your main residence is excluded from benefit calculations as income or savings and rightly so. 

Would that not be equity as opposed to savings though......

Yes, equity isn't taken into account for benefits either. Would be grossly unfair to give someone no support because they own the house they live in, especially when they have no likely way to access that money.

Equity is not savings.....the question was, how with £ 300,000 savings are you entitled to benefits.....

housebuyer143

Neilos9 said:

housebuyer143 said:

Neilos9 said:

housebuyer143 said:

coypondboy said:

how on earth do you get 12k pa benefits with 300k in savings?

Because your main residence is excluded from benefit calculations as income or savings and rightly so. 

Would that not be equity as opposed to savings though......

Yes, equity isn't taken into account for benefits either. Would be grossly unfair to give someone no support because they own the house they live in, especially when they have no likely way to access that money.

Equity is not savings.....the question was, how with £ 300,000 savings are you entitled to benefits.....

They don't have £300k savings. I believe they state it's in the property as equity or that's how it reads to me. If not, it's probably because disability benefits are not means tested.