Can you get a joint buy to let mortgage?

Yes, you can get a joint buy to let mortgage and many people will see a joint buy to let mortgage as being the avenue on to the buy to let market especially if they have no previous experience of managing a buy to let property.

Most buy to let mortgage lenders will not lend to first time buy to let mortgage borrowers and the only way these people can get a buy to let mortgage is by finding an existing buy to let landlord who may have some experience and getting a joint buy to let mortgage with them.

Most buy to let mortgage lenders will only require that the first buy to let mortgage applicant in a joint buy to let mortgage owns a buy to let property already.

When getting a joint buy to let mortgage, the mortgage lender will assess everyone’s income to ensure you all meet their eligibility requirements for them to lend to you.

Getting a joint buy to let mortgage with bad credit

It may be possible to get a joint buy to let mortgage with bad credit but you may need the help of a bad credit mortgage broker. Most buy to let mortgage lenders may also expect you to put down a bigger mortgage deposit.

Bad credit could include:

A CCJ

An IVA

A debt management plan

A default

A bankruptcy

A home reposession

Getting a joint buy to let mortgage whilst self-employed.

Getting a joint buy to let mortgage whilst self-employed is certainly possible but most buy to let mortgages will expect to see at least 3 years worth of accounts from the self-employed borrower.

Benefits of a joint buy to let mortgage

A bigger mortgage deposit

Aside from allowing new buy to let mortgage investors into the market joint buy to let mortgages will allow investors who don’t have enough resources for a sizeable buy to let mortgage deposit to get on the buy to let property ladder.

Buy to let mortgages are known to be usually more expensive than residential mortgages even with loan to values of up to 85% so most borrowers may see a joint buy to let mortgage as an opportunity to pool their resources together by putting a bigger mortgage deposit and reduce the joint buy to let loan to value.

This will ideally make the joint buy to let mortgage cheaper and more affordable.

Possible tax savings

Joint buy to let mortgages may also have a tax advantage if a couple gets a joint buy to let mortgage they could split the income derived from the buy to let property and allocate a greater share to the borrower with a lower tax rate and thereby save on the amount of tax they may have to pay.

This is not tax advice so please seek independent tax advice before doing this.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.