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dean corderoy

Do you need to earn 25k minimum to get a buy to let mortgage?

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Hey guys

 

I hope everyone is well and achieving their goals.

 

A quick background on me, Im a 28 year old guy who got back from travelling last year and looking to get back into architecture but the pay isn't brilliant until you either become a fully qualified architect or had years of experience and will only be earning £20-25K annually. I really want to get into property buy to let and flipping properties to eventually become financial free and retire pretty early. I have money behind me for a deposit but have been told that to get a buy to let mortgage you need to be earning £25K minimum (I currently earn about £24K - £20k + commission. I also have never had a mortgage before either and just rent.

 

If anyone knows the answer or could advise me of any brokers that would accept earning under £25k i would be truly grateful 

 

best wishes 

 

Dean :)

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The income is not your issues im afraid Dean. You won't really be able to get a BTL mortgage as a first time buyer because the risk of you living there is so high. Of the very few lenders that will do BTL for FTB's (just Natwest i think) they will only lend you as much as they would on a residential basis, certainly no more than 4.5 times your income.

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The income is not your issues im afraid Dean. You won't really be able to get a BTL mortgage as a first time buyer because the risk of you living there is so high. Of the very few lenders that will do BTL for FTB's (just Natwest i think) they will only lend you as much as they would on a residential basis, certainly no more than 4.5 times your income.

Hi Stuart 

 

thank you very much for the information I really appreciate it I will look at a way of trying to do both or see if I'm better at starting up a Ltd company.

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The income is not your issues im afraid Dean. You won't really be able to get a BTL mortgage as a first time buyer because the risk of you living there is so high. Of the very few lenders that will do BTL for FTB's (just Natwest i think) they will only lend you as much as they would on a residential basis, certainly no more than 4.5 times your income.

 

Agreed, I used Natwest and it scaled on my income, this was the only lender open to me.

You used to be able to borrow with Virgin but they closed the doors on this as early as around a year ago. Will see if more lenders arrive.

If flipping alternative finance (Bridging) may be an option but from what I've seen (I've not used it) it's not for the faint hearted!

Sam

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Limited companies will definitely not be an option as a first time buyer im afraid Dean, Personal guarantees are always required, and you have to meet standard BTL criteria as well as the additional requirements for the limited company. The company itself is a shell, purely for tax purposes and grants you no distance from the mortgage liability at all. 

Bridging lenders are likely to be the same, also they are most concerned about the exit. As you have never had a mortgage before, they have no real way of ensuring you will be able to get one when you are due to settle their short term loan, and so this would be extremely high risk for them.

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My brother got a FTB BTL mortgage with NatWest August 2015. He bought a £74k property with 75% LTV, 2 year fixed rate 3.89%

 

I also have a friend who's girlfriend earns £18,000/year but got a BTL mortgage with The Mortgage Works (part of Nationwide). You can only get Mortgage Works via a broker btw.

 

My advice is speak with a mortgage advisor and see what they can find you.

 

Sam

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