BTL on a low income
BTL on a low income
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brum

Original Poster:

54 posts

188 months

Saturday 3rd May 2014
quotequote all
Appologies for the long post for what will probably be a very short answer.

I purchased a 1 bed maisonette about 6 years ago with my GF to get onto the property ladder (£68250 purchase price)

My daughter was born 4 years ago so after a while 1 bedroom just wasn’t enough so we are staying with my girlfriend’s family for the time being.

Now the maisonette has been on the market for a while and is not getting much interest, I have considered renting the property out but I am currently on a low income.

Our plan would be to sell our property and to move into a rental for a few years until I am earning a reasonable wage in my new career (see below). As the house is struggling to sell I am wondering if there is any lender that would touch me for a BTL mortgage in my current situation.

A few more details.
Both my girlfriend and I are 27; she works full time and earns around 18k per year. I'm studying at college to become and Electrician (1 year in) and I also work for a bank 18 hrs a week and earn around 7.5k per year.
The property is currently on a staff mortgage at 0.5% interest and we owe 49k on it. I have around 25k in investments which I would prefer to keep for a future deposit but its there if needed.

Thanks
Brum

Magic919

14,569 posts

231 months

Saturday 3rd May 2014
quotequote all
Ask Sarnie.

Evil Monkey

354 posts

176 months

Saturday 3rd May 2014
quotequote all
I'm a mortgage underwriter for a large bank - looking at your staff rate I suspect you're working for the same bank. PM me if you like. If you're working at a branch then ask your branch-based mortgage adviser to run it through the system but provided you pass the credit score OK and the expected rent would be sufficient to meet self-funding BTL criteria (normally you'd need rent to be 125% of the mortgage payment) then I'd expect you to get a BTL loan.

Actually, having a think about it, unless you're raising additional borrowing then you probably only need to speak to the lender and obtain consent to lease, although you're then likely to lose the staff rate that you've got now.

Edited by Evil Monkey on Saturday 3rd May 13:28

Sarnie

8,375 posts

239 months

Saturday 3rd May 2014
quotequote all
Evil Monkey said:
I'm a mortgage underwriter for a large bank - looking at your staff rate I suspect you're working for the same bank. PM me if you like. If you're working at a branch then ask your branch-based mortgage adviser to run it through the system but provided you pass the credit score OK and the expected rent would be sufficient to meet self-funding BTL criteria (normally you'd need rent to be 125% of the mortgage payment) then I'd expect you to get a BTL loan.

Actually, having a think about it, unless you're raising additional borrowing then you probably only need to speak to the lender and obtain consent to lease, although you're then likely to lose the staff rate that you've got now.

Edited by Evil Monkey on Saturday 3rd May 13:28
^This.

Whoever that staff rate is with, try to keep it, you won't ever get a better rate. Ask for Consent To Let the property, if they refuse ask them about their BTL products and then contact me smile

brum

Original Poster:

54 posts

188 months

Sunday 4th May 2014
quotequote all
Thanks for the advice guys.