Can you really get a buy-to-let mortgage with no minimum income?
Thursday 5th July 2018
Becoming a homeowner is exciting. You can paint the walls whichever colour you like and hammer nails into the wall without the worry of being charged fees by your landlord. After a few years of homeownership, you may even fancy becoming a landlord yourself but the prospect of investing in a second property to rent out when you are on a tight income can seem daunting, and the idea of owning a buy-to-let property with no current income can seem impossible.
Luckily for you, Your Mortgage Broker Cardiff can assist you whilst you are on your journey to becoming a landlord. Our buy-to-let service can be specifically tailored to those on lower incomes or those with no income at all.
How can I prove low-risk to the lender?
At Your Mortgage Broker Cardiff, we can advise you on a buy-to-let scheme that is non-regulated and does not consider personal income. Instead, the buyers existing personal mortgage can be used to assess the sustainability of the loan as well as the income likely to be made from the rental property. With no minimum income threshold, the valuation of the buy-to-let property will determine the affordability of loan terms. This valuation will provide the lender with the security needed to process the mortgage. This product differs from other mortgage services because the relationship between the lender and the landlord is a business to business exchange.
How does 'buy-to-let' differ from 'residential'?
Many of the processes and assessments involved with taking out a buy-to-let mortgage are vastly similar to taking out a residential one. However, the are some differences worth noting. The second property must be used as an investment and rented out to create income and to become a successful buy-to-let mortgagee, you are usually required to have had ownership of a residential property for six months or more. If necessary, we can help you find interest-only buy-to-let mortgages, which reduces monthly payments and eases the affordability of the investment, but the capital, of course, must be paid in full at the end of the term.
Responsibilities as a new landlord.
As a landlord, your responsibilities will increase and you will be required to carry out a number of checks and obtain insurances in order to comply with all the legal requirements and regulations, but we can advise on your obligations as a landlord and offer advice on handling security bonds and tenancy contracts.
Your Mortgage Broker Cardiff pride ourselves on offering everyone the opportunity to increase their property portfolio regardless of income. We know the buy-to-let market inside out which allows us to focus on finding you the right lender so you can focus on your new investment. If you do have a low income or no income but are looking to invest in the property market, call us on 02921 321300 to get booked in for a free consultation.