Buy to Let for First time buyer?

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  • Buy to Let for First time buyer?

    Hi Everyone.
    I own a house, but having inherited it, have never had a mortgage on it or indeed any other property. Now I want to invest in property, and buy a house with the view to letting it out. However I see that most of the mortgage lenders insist on you having had a mortgage before you get a buy to let mortgage. Does anyone else have experience of this and if so, how did you get around it?
    I have enough money saved that I would only need 70-75% mortgage.
    Thanks
    Dylan

  • #2
    If you have had a mortgage before, the mortgage lender can check your monthly re-payment record as they don't want to lend to any person who is proven to be an "unreliable payer". It may help you if you have bank statements to show you are a good consistent saver.

    Even if you can raise the 25% -30% initial deposit, you still need to keep some savings in reserve in case (1) your tenant stops paying you - such that you can still meet your monthly mortgage re-payments (2) rental demand in your neighbourhood is poor and taking a long time to find tenant.

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      louisck
      Hi. Wasn't sure where to post this. I have tried to use google but almost all the information regarding joint-mortgage is between couples. I am wondering, if you have a joint-mortgage, but one person refuses to pay, leaving you with all the payments; can you get their name removed from the title-deeds...
      23-07-2017, 10:21 AM
    • Reply to Joint-Mortgage friend not paying their half
      loanarranger
      It is entirely down to the lender as to whether party B can be allowed to be discharged from the mortgage and that as I pointed out is 100% dependent on where Party A can satisfy them of his ability to meet the mortgage payments using his financial data using the prevailing loan affordability matrix....
      23-07-2017, 14:22 PM
    • Reply to Joint-Mortgage friend not paying their half
      leaseholder64
      Loanarranger: I think we actually agree. I was trying to keep the posting short as it is basically saying there is no simple way of doing it, and possibly didn't make it clear that you would both permission from the other party to buy them, and to arrange new mortgage terms. (I believe the mortgagee...
      23-07-2017, 13:09 PM
    • Reply to Joint-Mortgage friend not paying their half
      loanarranger
      leasehold64 , unfortunately one cannot just start a new mortgage or transfer the mortgage into a sole name until the other party has given agreement to relinquish their share of the property or sell their interest at an agreed price, then one has to approach the lender and establish if their own income...
      23-07-2017, 12:49 PM
    • Reply to Joint-Mortgage friend not paying their half
      leaseholder64
      I don't believe that being a couple makes any difference here, except, possibly, for tax. England v Scotland might and, using English terms, tenants in common versus joint tenants probably does.

      You can't force them to sell their share to you, and you will probably need to start a new...
      23-07-2017, 10:45 AM
    • Reply to Joint-Mortgage friend not paying their half
      jpkeates
      The ownership on the title and the mortgage aren't connected.

      The beneficial ownership may be affected, but it would take a court to determine that (and depriving a property owner of the entire property for not paying some of a loan secured against it would be a huge step).

      ...
      23-07-2017, 10:36 AM
    • Reply to Joint-Mortgage friend not paying their half
      MrShed
      Not without the other persons permission, no.

      You would have to sue the other person for their share of the mortgage.

      Whats the situation here, do both parties still live in the property? Some context may be helpful as to options.

      (PS - "couples" are...
      23-07-2017, 10:29 AM
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      loanarranger
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