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first time BTL mortgage for Under 21 year old


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Morning all,

unfortunately I am not the 21 year old in question but a friends son has asked me about this as he wants to get into BTL. He lives at home and works full time PAYE on around £19k a year basic plus commission (he is an estate agent). He is 19 years old and will obviously be a first time landlord.

Looking online it looks like most lenders require you to be over 21. Does anyone have experience with people being able to get mortgages being under this age?

What generally is the minimum income requirement, is it £20,000?

I suspect he may really struggle to get funding but would appreciate any advice.

thanks

J

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I think there are about 18 lenders that would consider a first time buyer, first time landlord and someone under 21. There are plenty of caveats that will go with that however, which might further reduce their options and some of those lenders are very pricey.

It will be challenging, but not impossible, and then gets much easier once they own property they rent for 6 months or more.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker & BTL Specialist

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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The income is also a factor but with all of these factors there are lenders available.

Evidencing income over 20K will help - this is the minimum for many lenders

some will be more expensive, some will be a pain to deal with.

speak to a specialist broker

Good Luck
SteveWalker
www.promisemoney.co.uk

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Another option would be to buy a property for himself and use the rent a room scheme to bring in some income. That will make him a homeowner which would make a future BTL easier, and he gets the same capital gains but avoids the tax issues.

Whilst it would use up some of the deposit, as an owner occupier, he shouldn't need to put down 25% and the income from his lodger(s) would build it back up quickly anyway. 

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6 hours ago, jamesbo said:

unfortunately I am not the 21 year old in question but a friends son has asked me about this as he wants to get into BTL. He lives at home and works full time PAYE on around £19k a year basic plus commission (he is an estate agent). He is 19 years old and will obviously be a first time landlord.

Looking online it looks like most lenders require you to be over 21. Does anyone have experience with people being able to get mortgages being under this age?

What generally is the minimum income requirement, is it £20,000?

I suspect he may really struggle to get funding but would appreciate any advice.

 

It looks like this kid has his dead screwed on well. When I was 19, I was a moron!

He just need to speak to loads of brokers and see what is available. If nothing is possible right now, then try again in 6 months, when income is above £20,000

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Vin Gupta
Property Investor and Developer
UK Property Blog: https://evolutionblogger.com/article/uk-property-articles
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I have been in the same situation. It makes it a lot easier if you already own your own home. If he is an estate agent he should be able to buy below market value properties. I would buy something for below market value then remortgage after 6 months to pull money back out and use that to buy the btl. Lenders are giving high valuations at the moment so shouldn’t have an issue. If he wants to he can sell the first property once he has completed on the btl

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