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Can I get a buy to let mortgage without an income?

Borrowing | Mortgage Helpful? 16

Asked by winger14, submitted 19 May 2013.

Open Quote Is it possible to get a buy to let mortgage if you are not in full time employment ? I am 51 and have just retired having built up a share portfolio to provide me with an adequate income. I have also paid off the mortgage on my house which is probably worth about £150,000.
The house I would like to buy with a buy to let motgage is worth approximately £175,000 and I have funds for the sort of deposit lenders seem to require of around 35%.

Whilst I could sell some shares and buy the house and apply for a mortgage after I have a tenant in place, I do not want to do this, I really want the morgage to buy the house and then rent it out.

I have spoken to an Agent who has told me it should be possible to find a Tenant quite quickly
End Quote

Answered by Justin on 28 June 2013

It's common for buy to let lenders to require a valuation confirming that rental income will be at least 125% of the mortgage interest. Provided you can meet this then you're over the first hurdle.

The bigger issue might be that many lenders require proof of personal income too and link the maximum amount you can borrow to this.

I'm afraid I'm not buy to let mortgage expert, but I gather BM Solutions (part of Lloyds Bank) has recently relaxed the personal income requirement for experienced buy to let investors. And Mortgage Works has a reputation for being quire a flexible lender in this respect too.

I'd start by speaking to a mortgage broker, since the above mentioned buy to let mortgages are only available via brokers in any case. They should be able to give you a clear idea of how much you can borrow and how much it will cost. Just ensure the broker doesn't try to take you for a ride with their own fees - the mortgage lender will probably be paying them around 0.25% to 0.50% in any case.

Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if necessary, use a qualified professional adviser.

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