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Buy-to-Let for Unemployed First Time Buyer


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I am a novice property investor at the ripe old age of 56 and I currently own 2 buy-to-let's and 1 residential property.  Seeing an opportunity, I really want my 19 year old son to get into property with my support and start to earn an income and become independent on his own.  Sadly, he recently left school and is still unemployed.  That said, I am trying to find out about mortgage opportunities for him but he does not own a residential property as he still lives at home.  Is this really a no-goer or does anyone have any advice on how to go about this please?

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Yeah, pretty much a non starter im afraid.

The issue is that as a first time buyer, first time landlord most lenders wont lend more than they would on a residential. They are wary of applicants using the BTL affordability where their own income wont support it and simply getting a BTL mortgage and then living there.

If he's got income, but no home there are options. If he has a home but no income there are options, but both factors definitely not.

Also a lot of BTL lenders have a minimum age of 21 too, and that might factor into the above as well.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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Thank you for your response .... we are not looking for him to live there but to rent it out and earn an income from it and maybe build a portfolio. Perhaps the only option is to set up a company and do it that way with my help.  I have heard from the likes of Touchstone and Simon Zutshi that they have youngsters making money from property and I am trying to find a way for him to do so. 

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The point is that on completion they cant know if your son will just live there or not, so they exclude people without an existing home, or limit lending so they are not in breach of the FCA/PRA should that happen.

A company makes no difference, its just a tax wrapper the same rules apply, and in fact you just further reduce the number of lenders available.

I'd always take what people who sell self help say with a pinch of salt. Like some of the brokers on here who profess to have that one deal that technically might work under narrow circumstances. Just because its feasable in principle doesnt mean you will get a positive outcome, you'll just burn some money paying snake oil salesmen. As they say, those who can: do, those who can't: teach.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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