Getting into buy to let before 21

  • Filter
  • Time
  • Show
Clear All
new posts

    Getting into buy to let before 21

    I've been looking at getting into letting properties as a SPV would this be possible at 19 as some lenders are picky on age as it would be under a business which i'm a director of would this make it more likely to obtain a btl mortgage. The LTV would be around 70%. If anyone could shed any light on this it would be greatly appreciated or link me to any relevant posts or information, Thanks.

    Borrowing via a Ltd Co will require a person to provide a Personal Guarantee which in itself requires that person to earn a satisfactory level of income to meet the liabilities of the company , a normal condition is being a homeowner and certainly irrespective of whether the funding is via a Ltd Co or ina Personal name for anyone under 21/25 is probably left to very niche lenders whose rates might not be beneficial.
    If you are really serious could you persuade your father to assist by becoming a majority shareholder or joint owner and whilst you too would need to also provide a PG you might make the proposition slightly more attractive to those lenders who will accept an applicant below the norm of 21/25


      I have done some research to try and help you in your quest to become a Landlord. The following lenders indicate a preparedness to accept an applicant with a minimum age of 18;-
      Family Building Soc (BS)
      Ipswich BS
      Skipton BS
      Kent Reliance
      Furness BS
      Leeds BS
      Nat West
      Godiva ( Coventry)
      Dudley BS

      Remember each lender will have its own criteria including employment , Income , Credit Profile so before you become too enthusiastic you will need to establish eligibility before looking at terms , it is important to take note of the reversionary rate ( after the incentive rate has expired) Do they offer Further Advances or Loyalty switch products just in case the mortgage market changes .

      Hope this helps.


        Thank you for the research with a deposit of around £40,000 on a house valued between £100,000 and £120,000 should give me a LTV of around 65-75%. With a income of £32,000 before tax it attract lenders despite being 19. My parents currently have BTL mortgages with skipton and leeds I know I will have to pay slightly higher on the interest rate however it will go off the profit where as my parents doesn't. Without having any current debt it should be straight forward, thank you for the extra research it is appreciated. My parents were under the illusion you have to be over 21 to get a BTL mortgage which is why I decided to ask on here.


          You must be a remarkable person to be able to enjoy such an income; you clearly have your sight set on emulating your parents.
          You mention two lenders with whom your parents have BtL mortgages with, as a broker I consider them as being mid range for consideration particularly Leeds whose Reversionary rate is a trigger for remortgaging at the end of the initial incentive.There is competition amongst lenders and I feel that once you reach 21 with a positive track record the number of lenders available will benefit you going forward.


            Do you still live at your parents if so do you have a plan to move out after one or two buy to let's?


              I am fortunate to have a well paid job I've been saving up to buy propperty I will make sure I look around or get my parents mortgage advisor to find the best deal. I do live at home and I'm not charged any rent so my overheads are low £20 For phone bill £80 a month petrol and car insurance is £1600. The plan is to have a few buy to let before I move out. Hopefully after I have a few buy to lets ill move out, I will still be a first time buyer and take advantage of no stamp duty when I can afford a higher value propperty with my right to buy isa and cheaper mortgage rates. With my dad being a builder the plan is to buy slightly run down house add value take the equity out of the house (not all the equity) and get another a common stratergy. I am aware plans don't always go the way you expect.


              Latest Activity


              • Overpay which mortgage?
                Hi All. We have a BTL interest only mortgage @ 3.88% on rental
                We also have a interest only mortgage on our residental house @ 2.05%
                If miraculously we have money to overpay , which should we choose?
                I thought 3.88% as higher interest , wife says 2.05% as its our residence and leave...
                23-05-2019, 14:27 PM
              • Reply to Overpay which mortgage?
                CGT is charged on what you get for a house versus what you paid for it. Whether you have a mortgage to pay off or not is immaterial.
                23-05-2019, 16:12 PM
              • Reply to Overpay which mortgage?
                Ok thanks. We thought overpaying on the rental increases the profit ie more CGT
                23-05-2019, 15:26 PM
              • Reply to Overpay which mortgage?
                I don't think your mortgage has any bearing on CGT.

                Even taking 40% tax relief off 3.88% is more than 2.05%, so I'd say the BTL is the one to overpay.
                23-05-2019, 14:33 PM
              • Workplace Pensions
                Going off on a slight tangent here.

                My workplace auto-enrolment pension now has me contributing £150 per month. My employer matches this.

                My statement reads, in today’s money...

                At 65 years old (I’m 36 now) I may receive.

                11k tax free. ...
                21-05-2019, 09:07 AM
              • Reply to Workplace Pensions
                The ones I've always seem assume no further contribution, but the OP seemed to suggest that the scheme has only just started, and, given the figures used for these estimates have gone down a lot from when I was first in a money purchase scheme, I think a £44k pension pot in present day terms couldn't...
                22-05-2019, 10:36 AM
              • Reply to Workplace Pensions
                I believe your pension statement is based on a calculation of what your pension fund is worth today and inferring no further contributions made. So if you stopped paying in to your pension fund, this is what your fund could potentially be worth at 65.

                Each year you contribute more, this...
                22-05-2019, 09:50 AM
              • Reply to Workplace Pensions
                its not as bad as mine your better off than me -
                my workplace pension 53pence a month and im 6 years off retirement i think ill get about 50 pound a year so im going to have to work beyond retirement doing on line work and stuff like leaflet distribution but id be happy with the 11,000 a year...
                21-05-2019, 14:50 PM
              • Reply to Workplace Pensions
                I'm a little bothered by the low figures.

                If the "tax free" amount is meant to reflect the position of today (ie. you can take out 25% tax free), it would mean your pension fund would be £44k when you are 65.
                Which means that the fund must have lost more than half its value...
                21-05-2019, 14:24 PM
              • Reply to Workplace Pensions

                The monthly return does appear 'low'. However, I put as much into my pension as possible each year to bring my income into a lower tax bracket.

                Think about how much it is actually costing you.

                For £300 contribution each month it is only costing you £120 (assume...
                21-05-2019, 14:08 PM