Non-homeowner purchases buy to let after just a month at current job

We were approached by a part-time landlord with two existing buy to let properties looking for help sourcing funds to purchase a buy to let property.

The property he wished to buy is a 3-bed semi-detached house in good, letting condition located in a large town on the South Coast.

The client’s situation caused a few challenges when sourcing funds because:

• He had only been at his job for one month
  Some lenders would be cautious of this as the borrower has not passed the probation period and is therefore in a less secure position

• His annual income is less than £25k
  Many of the mainstream buy to let lenders impose a minimum income of £25k pa, so the choice of suitable products was restricted

• He doesn’t own his own home
  Many lenders prefer borrowers to own their own home before owning buy to let properties 

In the client’s favour, he has landlord experience and already owns two other buy to let properties.

We approached a high street lender with this deal as the client fitted its criteria and it offered the following deal.

Property value: £154,000

Loan amount: £115,500

LTV: 75%

Rate: 2.99% 2 year fixed

Term: 20 years interest only

Mortgage payment: £287 pcm

Rental income: £795 pcm

Gross yield: 6.2% pa

Lender arrangement fee: 2.5% (£3,875) added to loan

Consultant Mortgage Broker: Andy McOwat, 01625 416396

2nd October 2015