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  • Mortgages & Finance

    Full Time BTL Investor

    Hi - I am a Full Time BTL investor and on a recent purchase I came up against the issue of my others earnings. It did not seem good enough that I earn about £60k net from BTL but the mortgage companies needed to know my other earnings which luckily I had from cashing in other investments.  question is how do other investors get round this issue ?? Be interested to hear your thoughts....

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    Please can you clarify?  Do you mean your other earnings (ie earnings from other sources) or your other (i.e. partner / wife / etc)'s earnings?  Sorry for the question but I've seen many people refer to their 'other' half ....   :-)

    If it's 'other sources of income', lenders are always looking at the risk that a borrower brings with them.  Let's say that your other sources of income are other businesses that you own.  Is that business failing?  Is there a reducing / dwindling profit?  Is the business in danger of bankruptcy?  These questions alone raise concerns (in the event that these other scenarios are true) that your properties could be at risk from creditors who have a claim due to personal guarantees with the business.

    I know, this is all hypothetical and may be a million miles away from your own personal scenario, but it is an insight in to just one of the myriad of due diligence assessments that banks do nowadays.


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    * For BTL's, residential mortgages, bridging, life cover and estate planning Property Tribes Financial Services website.

    Online Life Insurance quotes here          Property Tribes Financial Services Videos here

    For commercial finance, complex BTL and HMO funding, development finance, international and expat mortgages, and portfolio BTL mortgage services Assured Funding website.

    Telephone: 01206 654444

    __________________________________________________________________________


    Hi - I meant income other than from BTL. As a BTL full time investor dont have time for anything else . I Would have thought that you reliable steady income stream from 10 properties netting 60k would suffice....


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    This is where you need a good mortgage broker.

    There are a number of lenders who will consider people who only have rental income and no other income.

    *Lenders who accept income derived from letting property

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    Hi Keith
    The lenders have to adhere to many rules and guidelines and any questions asked will be used to satisfy such things as affordability and even money laundering checks.
    It will also depend on which lender you used as some lenders still do not allow income derived from UK land and property for an application hence the reason for questions on other income.
    You were not being targeted by the lender. The lender was just doing their job correctly so please do not worry
    Stephen – Property Tribes Financial Services
    01206 654444

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    I have a Large BTL Bussiness and I have a very small mortgage on our home LTV around 45%

    I have accounts are records of profit and loss going back over 30 years

    I too only had BTL income and the profits are good and they show I have made a clear living from property since 2000

    I was quite taken back when I had an issue getting a remortgage

    Lenders did not want to know about my private income

    I had to rely on my wife's income who is in full payed  employment to get a re mortgage

    Its really strange I can get a BTL Mortgage tomorrow but I cant get a Mortgage for my home

    we live in strange times 

    Mind if you have a 60k profit now and you have mortgages in your own name you may pay another 30% tax going forward and that's down to S24

    so maybe lenders know a little more than we do ??


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    Learn Change and Adapt ?????


    "I was quite taken back when I had an issue getting a remortgage

    Lenders did not want to know about my private income

    I had to rely on my wife's income who is in full payed  employment to get a re mortgage

    Its really strange I can get a BTL Mortgage tomorrow but I cant get a Mortgage for my home "

    DL, did you work with a Broker?  Or did you try and get your own remortgage direct?  The reason I ask is because your stated experience is just not a true reflection on the market available via brokerages like mine.  There are indeed lenders who will provide resi mortgages to full time property investors who only receive rental income.  

    You state "I had to rely on my wife's income who is in full payed  employment to get a re mortgage " whereas I could get you one today, from high street lenders. We do it all the time.  Any time you want to test us out for the work that we do, the (very wide) access to market that we can provide for you, securing deals that many other Brokers can't, call me anytime.  

    My one caveat to my 'promise' of getting a mortgage for you is that, of course, it's not just income that determines mortgage-worthiness, it's also credit status, other expenses and liabilities, an affordability checker and various other due diligence factors that lenders assess as well.  

    So, as long as you tick all of those boxes too, then my promise could come good for you.

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    __________________________________________________________________________

    * For BTL's, residential mortgages, bridging, life cover and estate planning Property Tribes Financial Services website.

    Online Life Insurance quotes here          Property Tribes Financial Services Videos here

    For commercial finance, complex BTL and HMO funding, development finance, international and expat mortgages, and portfolio BTL mortgage services Assured Funding website.

    Telephone: 01206 654444

    __________________________________________________________________________


    I used a broker but it was not until the valuation was done that they then said my income did not count for mortgage purposes ?

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    Learn Change and Adapt ?????


    Hi DL, thanks for the reply.  In that case it's clear that pre-application research based on your personal circumstances, was not fully carried out, whether by mistake or incompetence.  

    It's a fundamental piece of pre-DIP, pre-app 'broker underwriting' to disclose all such material factors to the lender.  

    It's good that this gets discussed online as it will hopefully help many other full time BTL'ers to save time (and money) when progressing their own residential mortgage applications.

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    __________________________________________________________________________

    * For BTL's, residential mortgages, bridging, life cover and estate planning Property Tribes Financial Services website.

    Online Life Insurance quotes here          Property Tribes Financial Services Videos here

    For commercial finance, complex BTL and HMO funding, development finance, international and expat mortgages, and portfolio BTL mortgage services Assured Funding website.

    Telephone: 01206 654444

    __________________________________________________________________________


     I think the broker thought BTL was self employment  which it isn't

    but we got it with a struggle regards DL

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    Learn Change and Adapt ?????


    Based on solely on BTL income the Halifax gave me an interest only loan of £450,000 to age 80.

    My daughter whose income is also only from BTL i  has just completed an interest only loan of £150,000 with the same lender ,I previously had a loan with the Nationwide BS based on BTL income only

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