BTL, debt and no income

glen_bel · 16 July 2019 at 5:57PM

My husband and I currently have 2 btl properties, one with a mortgage through Birmingham Midshires, the other we used some cash and credit cards, cards in my name debt is £38k.

Long story short and for my own reasons I want to purchase another btl property with a mortgage solely in my name and without my husband having any knowledge of it. Unfortunately I am between jobs but would have no problem letting the property for over 150% of a mortgage. Would it be possible to get a btl mortgage based solely on the rental income and with debt?

sheepy21 · 17 July 2019 at 2:33AM

Sorry but if the bank would just hand over the money on the promise of rental income we’d all be doing it! You have no deposit, no income and huge debt. So no chance!
If you’re having marital issues, which I assume you are as this is a bizarre plan, I’d focus on both of you clearing the credit card debt so you’re not lumbered with it

Itsjustsammy19 · 17 July 2019 at 6:46AM

I agree with Sheepy21. You don't have any chance of getting another mortgage in your situation

sal_III · 17 July 2019 at 9:40AM

If you are actually married, it will make no difference, whether the property is in joint names or your name only when it comes to divorce.

You are up to your ears in debt with no income and expect to get a mortgage?

glen_bel · 17 July 2019 at 4:10PM

Thanks for the replies.
I do have a deposit and yes I could pay it off the 0% credit cards to reduce the debt, however I was holding off to try and use it as a deposit. Both our properties are let and the rents service the credit cards and the mortgage, its just that the cards are in my name therefore the debt shows as belonging to me. I will go back to work soon, I do temporary contracts. I ll just have to wait a bit and buy without a mortgage.

sal_III · 17 July 2019 at 4:41PM

glen_bel wrote: »

Thanks for the replies.
I do have a deposit and yes I could pay it off the 0% credit cards to reduce the debt, however I was holding off to try and use it as a deposit. Both our properties are let and the rents service the credit cards and the mortgage, its just that the cards are in my name therefore the debt shows as belonging to me. I will go back to work soon, I do temporary contracts. I ll just have to wait a bit and buy without a mortgage.

What happens if one or both tenants stop paying? And/or when the 0% cc period is over?

glen_bel · 17 July 2019 at 4:52PM

sal_III wrote: »

What happens if one or both tenants stop paying? And/or when the 0% cc period is over?

Yeah, they could do but my husband works and he would cover a few missing months of rent. Its not so much about servicing the existing debt because I am confident that it would be covered. Its about securing a mortgage on my own when the existing debt is seen as mine. I know the properties in my area and I know the rental returns but it is securing the finance is my issue.

Caz3121 · 18 July 2019 at 6:57AM

glen_bel wrote: »

my husband works and he would cover a few missing months of rent.

but you said you wanted this purchase to be secret

glen_bel wrote: »

mortgage solely in my name and without my husband having any knowledge of it.

what's the rush? wait until you are back in work and have an income to support the application

foxy-stoat · 18 July 2019 at 10:16AM

If you have no income other than the rent then I dont think you will get very far.

muhandis · 18 July 2019 at 10:34AM

Ignoring all the familial matters in the background (which might well be relevant)....

- You will need a sizeable deposit (25% at least), which I assume you know and have.
- The outstanding cc debt can have a disproportionate impact on your affordability, so in your place I would aim to bring that down first.
- I would wait till you start employment as there are a few lenders who will factor your personal income in the equation.
- Rental income *can* be taken into account by some BTL lenders (subject to a lot of other factors), so long as you can evidence it to the level they require. What evidence is acceptable however, is subjective and differs from lender to lender.

To summarise, no one here is going to be able to give you a definitive answer. In your place, I would arm myself with all pertinent details and talk to a broker.

glen_bel wrote: »

My husband and I currently have 2 btl properties, one with a mortgage through Birmingham Midshires, the other we used some cash and credit cards, cards in my name debt is £38k.

Long story short and for my own reasons I want to purchase another btl property with a mortgage solely in my name and without my husband having any knowledge of it. Unfortunately I am between jobs but would have no problem letting the property for over 150% of a mortgage. Would it be possible to get a btl mortgage based solely on the rental income and with debt?

[Deleted User] · 18 July 2019 at 10:50AM

There are lenders that require no minimum income for BTL. There are also lenders that require no income of any sort. Prime lenders as well, not even having to look too far off the high street

Repeating the above comment, not commenting on your personal family circumstances but in theory it would be possible to get a BTL without an income.
Get a broker who does a decent amount of btl and you will find a mortgage company able to lend based on criteria.
Passing a credit score with no income and high unsecured borrowing may be a different factor though.

BTL, debt and no income

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