Getting a buy to let mortgage with no minimum income.
There are many buy to let mortgage lenders out there who may be prepared to offer you a buy to let mortgage with no minimum income but this will usually have to be under the right circumstances.
Can I get a buy to let mortgage with no minimum income?
Yes, you can get a buy to let mortgage with no minimum income from some specialist mortgage lenders but usually, they may want to see that the buy to let property is generating income from its tenants at a particular coverage ratio.
Most buy to let mortgage lenders focus primarily on the financial performance of the buy to let building and less on the personal income of the borrower, although in most cases the borrowers personal income will be assessed to see if they can cover the monthly mortgage repayments on the buy to let mrotgage if the tenants in the property didn’t pay any rent for a prolonged period of time.
what income do you need to get a buy to let mortgage?
Most buy to let mortgage lenders will simply have criteria on how many months unoccupied income you should be able to show. This simply means that you should have enough income to cover the monthly mortgage repayments for a minimum amount of months. For some mortgage lenders this could be 6 months for others it could be 12.
The buy to let mortgage lender may take into account your current savings aswell.
Can you get a buy to let mortgage with a minimum income?
Some buy to let mortgage lenders may have a minimum income requirement of £25,000 for you to be eligible for their buy to let mortgage. Some buy to let mortgage lenders may consider supplementary incomes while others won’t.
Considering supplementary income could make your affordability for a buy to let mortgage increase and increase your “ability to repay”.
Supplementary income could include:
Overseas earned income
- Attendance Allowance benefit
- Carer’s Allowance benefit
- Child Benefit
- Child Tax Credit benefit
- Disability Living Allowance (DLA)
- Incapacity Benefit (IB)
- Industrial Injuries Benefit (IIB)
- Maternity Allowance benefit
- Pension Credit benefit
- Severe Disablement Allowance
- Widow’s Pension benefit
- Working tax credit benefit
Can you get a buy to let mortgage with no minimum income?
You may be able to get a buy to let mortgage with no minimum income requirement as long as you have some form of income. There may also be buy to let mortgage lenders who will lend to you if you have no income at all but your buy to let mortgage application will need to justify to the buy to let mortgage lender why this is a good idea.
A buy to let mortgage broker may go a long way in helping you achieve this.
Can you get a buy to let mortgage without a job?
You may be able to get a buy to let mortgage without a minimum income or job if you can prove to the buy to let mortgage lender that you have suitable savings, investments or unmortgaged property which you can use as collateral or may be able to use to repay the buy to let mortgage in case your tenants defaulted on their rent repayments for a prolonged period of time.
If your tenants are also currently paying rent which is at least over 120% of the total monthly mortgage repayment this may also go a long way to convincing the buy to let mortgage lender to allow you get a buy to let mortgage with no minimum income or a job.
Use a mortgage broker for your mortgage in principle
You may want to use an independent mortgage broker to help you get a mortgage on your new home.
Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.
This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.
A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.
After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle.
This will allow you to shop for your home as more estate agents and sellers may take you seriously and it will also give you confidence that your mortgage is indeed a possibility before you make a full mortgage application.
Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.
This will come with a key facts illustration document that details the features of your mortgage including how much you will pay per month.
It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.
If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.
Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.
They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer, and set a completion date with the seller or their conveyancer.
This will then bring an end to the conveyancing process, at which point you will receive the keys to the house and move in.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.