buy to let minimum income?

Brodiebobs
Brodiebobs Posts: 1,032 Forumite
First Anniversary First Post
in Mortgages & endowments
hi guys.

After a bit of advice please, we have seen a couple of properties we would like to buy to rent out.

For the price range we've been looking at we have a 20% deposit could stretch to 25% if needed.

The issue comes with mortgages, after approaching my current lender for our residential mortgage after discussing they were happy to lend to us looking at the values, then came across the stumbling block of our income. I work part time, so our joint income is just a couple of hundred below 25k, their minimum income for buy to let, we do also get tax credits but they wouldnt take this into account, to push us over the threshold.

After looking online quite alot of lenders have this minimum income of 25k or above in some cases..... is there any way round this?
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Comments

  • holly_hobby
    holly_hobby Posts: 5,363 Forumite
    Combo Breaker First Post
    Ipswich BS - don't have a minimum income requriement (but you must have income)

    Max LTV 75%

    Fees are a bit hefty ... but horses for courses !!

    Accept direct business and lend throughout Eng & Wales

    Link to assist ... http://www.ibs.co.uk/images/documents/Mortgage/Specialist_Mortgage_Rate_Guide.pdf

    Hope this helps

    Holly
  • Brodiebobs
    Brodiebobs Posts: 1,032 Forumite
    First Anniversary First Post
    Thanks holly, i'll take a look.

    As i said in the first post, we do have income of over 24k, but everywhere we looked the minimum income was 25k!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Brodiebobs wrote: »
    As i said in the first post, we do have income of over 24k, but everywhere we looked the minimum income was 25k!

    The requirement for income of £25k is a bare minimum. So does not mean that you would qualify if you did earn this level of income jointly.
  • holly_hobby
    holly_hobby Posts: 5,363 Forumite
    Combo Breaker First Post
    Yes that's correct - 25k min inc is a general/standard marketwide BTL criteria requirement ( unless you are a protfolio landlord).

    A broker will be able to give any alternatives to Ips BS re your income & BTL criteria.

    Hope this helps

    Holly
  • Brodiebobs
    Brodiebobs Posts: 1,032 Forumite
    First Anniversary First Post
    thanks guys, just seems like alot as where we are the mortgage wont be for much more than our joint income, and the rental income will be about 200% the monthly mortgage payment, we've investigated the market for about 2 years, like everyone here seems to advise now its come as a bit of a shock we will struggle to get a mortgage!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Brodiebobs wrote: »
    the rental income will be about 200% the monthly mortgage payment,

    Seems an exceptionally good return. So what's the catch?
  • holly_hobby
    holly_hobby Posts: 5,363 Forumite
    Combo Breaker First Post
    You have to understand that a BTL mortgage is in essence a semi-commercial mortgage - and as such subject to different criteria and risk exposure to the lender, hence the min income requirement of most lenders in the market.

    Hope this helps

    Holly
  • Brodiebobs
    Brodiebobs Posts: 1,032 Forumite
    First Anniversary First Post
    Thrugelmir wrote: »
    Seems an exceptionally good return. So what's the catch?


    We cant see one really, slow selling market here, some exceptionally cheap houses and a really strong rental market. The street were looking to buy on has 2 rented houses who are on with an agent we are good friends with, neither has been empty for longer than a month in the 5 years he's had them on his books, both now have long term tennats who've been in more than a year.

    Most of the ones we looked at are residential repo's so slightly below 'normal' market prices.

    We werent taking this lightly and are looking in areas we personally know, not just because of the price, and have researched it loads and had a conversation with the bank who went over our figures 6 months ago and were more than happy to lend, then when we wanted to get something in writing they mentioned the minimum income that we'd never been aware of before!!
  • koexelek
    koexelek Posts: 7,847 Forumite
    The Mortgage Business ( part of Nationwide) do not have a minimum income requirement either.
    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.
  • Brodiebobs
    Brodiebobs Posts: 1,032 Forumite
    First Anniversary First Post
    koexelek wrote: »
    The Mortgage Business ( part of Nationwide) do not have a minimum income requirement either.


    just googled these and only has existing customers and that they are not accepting new applications?
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