Will my lack of employment prevent me in gaining finance for a BTL mortgage?

I have been out of work for a while through choice as I have been living off my inheritance. I still have a decent amount left but I am thinking I should do something with it, like investing in property and becoming a landlord. Will my lack of employment be prohibitive in getting finance for this?


I am afraid it will be. Lenders do like their borrowers to have an income of sorts, whether it is rental income, Investment income, traditional PAYE, pension etc.

Lenders do not lend to those who are not in receipt of any income at all. Their logic would be that should you use up all of your inheritance and then one of your properties becomes empty, you would not have the means to support the mortgage payment and would fall into arrears. 

One possible avenue could be to purchase a property outright and then, once you had been letting this long enough to have produced a tax return showing this income, you may be eligible for a mortgage with some lenders as you would have self-employed income from property rental.