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Can I get a buy to let mortgage if I don't have a job?

Discuss everything relating to mortgages

Can I get a buy to let mortgage if I don't have a job?

Postby bradford » Sat Aug 03, 2013 6:53 am

if so how much percentage do I have to put down to get it?
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Can I get a buy to let mortgage if I don't have a job?

Postby valdo » Sat Aug 03, 2013 6:59 am

You can get a loan without a job for buy to let with some lenders.

You will most likely need a 30% deposit possibly 25%.

The rent repayments will need to cover a specific rate in most circumstances. a lot of lenders ask for 125% of the repayment on a capital repayment basis.

Being a first time buyer would cause you more issues as some lenders will not do buy to let for first time buyers.
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Can I get a buy to let mortgage if I don't have a job?

Postby chuchip » Sat Aug 03, 2013 7:06 am

You can get a mortgage without a job, if you can show that your future income will support the mortgage and prove it. A bank will want to see that the property can realistically earn the needed income to cover the mortgage, upkeep, insurance and all the extras. They will also likely want some proof that you know what you are doing, as having years of experience developing and maintaining rental property. The rental income must be realistic for the area and property and they will want to see that you have enough skin in the game (equity down payment), so that you will not abandon a project if it takes time to find a suitable tenant. Generally, you can expect to receive 10 months of rental income every 12 months and that income should cover 120% of your estimated expenses.

So for example a rental of $1,000/month would generate $10,000 a year which would cover $8,333 of mortgage plus expenses. That means at a 5% interest only mortgage. You'd figure maybe $6,500 to pay the mortgage or a loan of $130,000. A conventional mortgage would be less, maybe $110,000. If you put down 20%, Then its a $137,500 property. The question is: Can you buy a property for $137,000 and rent it for $1,000/month easily?
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Can I get a buy to let mortgage if I don't have a job?

Postby demason48 » Sat Aug 03, 2013 7:17 am

if you have a portfolio of properties you can do this because there is a spread of risk. With one property - no - because properties do not generate rent 12 months in every year.

Now if you have a suitable job you will need around 25-35% deposit.

Incidentally, you can't claim housing benefit if you have a home you rent out and the rent will affect (probably ruin) any other benefits.
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Can I get a buy to let mortgage if I don't have a job?

Postby aymer » Sat Aug 03, 2013 7:44 am

Yes you can. A few BTL deals rely entirely on projected rental income. The Mortgage Works is one example. Be advised the arrangement fees are steep and the interest rates are higher than a standard loan. But fees and interest can be set against rental income for tax relief. Make sure you put some savings away for a rainy day in case you are without tenants for a period.
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Can I get a buy to let mortgage if I don't have a job?

Postby easter » Sat Aug 03, 2013 7:46 am

You can find home financing with no employment, if you're able to present that the upcoming earnings will certainly assistance the actual house loan in addition to confirm the item. Any traditional bank should identify that the property can easily genuinely gain the actual needed earnings to cover the actual house loan, preservation, insurance policy in addition to all of the extra supplies. They may likewise probably want some evidence you are aware just what you do, because having years connected with experience acquiring in addition to maintaining leasing residence. Your leasing earnings need to be practical for the location in addition to residence and they're going to wish to view which you have enough epidermis inside online game (equity along payment), so that you will not likely abandon any challenge in the event that it will take time to find a appropriate tenant. Usually, you will definitely get 10 weeks connected with leasing earnings just about every 12 weeks and this earnings really should cover 120% of one's projected costs.
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Can I get a buy to let mortgage if I don't have a job?

Postby nye » Sat Aug 03, 2013 7:57 am

Answer this:
What happens when you have,no one living there, mortgage still needs to be paid? Or tenant does not pay? By the way it can take weeks to evict an unpaying tenant.

The central heating breaks down, do you have the funds? You can't just leave it, must be repaired asap.
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Can I get a buy to let mortgage if I don't have a job?

Postby federico » Sat Aug 03, 2013 8:04 am

I easily understand your logic but the situation PROBABLY is that
the owner wishes to have the value of his property in CASH
now, so that he can use it elsewhere NOW..............

otherwise, he can keep the property and not buy anything
that costs more than he collects in rent.
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Can I get a buy to let mortgage if I don't have a job?

Postby loren1 » Sat Aug 03, 2013 8:07 am

No, you'll fail the credit check as you will not have two years of continuous employment on record, also if you do have the 15% mortgage saved up then you wouldn't get much in benefits...so you couldn't finance any of the surveys etc.
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Can I get a buy to let mortgage if I don't have a job?

Postby hyatt » Sat Aug 03, 2013 8:19 am

The rental income would a) be taxable b) hardly cover mortgage repayments never mind management fees, cover for empty periods and non paying tenants c) affect any benefits you may be claiming and d) allow no excess for maintenace issues/insurance/repairs etc
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