Buy to Let mortgage with no proof of income – Is it possible?
Self employed and require a buy to let mortgage
Buy to let mortgages are a complex process that many borrowers use to allow them to keep their own home, buying another for rental purposes. The buy to let mortgage is unlike any other kind of property loan, since it combines the pressure of buying a house with the demands of running a business that is paying back a substantial loan. The fact that this combination is so awkward can mean that many lenders are reluctant to allow those who are self-employed, or who can show no current proof of income, to take out a buy to let mortgage. The risks are simply too high, they think, and this means that those who want to become landlords often fall at the first hurdle.
Changing the way banks see people who can’t prove a steady income
Mortgage applications for self employed people
People who could find it difficult to prove that they have a steady income include contractors, self-employed workers, agency workers, people who have more than one or two sources of income or jobs, and those who rely on commissions to boost their basic salaries.
These people as a group tend to find it hard to get any kind of mortgage or loan, because their income can vary from month to month, or may even have specific seasons where income is significantly more than at other periods. Yet, the people who are most likely to want to take out a buy to rent property are the very same self-employed. It is common for people who work for themselves to move from home renovations and development, on to buying properties to sell on, and then to look at buy to let properties as another source of income.
Banks and lenders have finally realised that people who are self-employed or unable to prove a steady income are not necessarily a risky group, and that there are some considerations that can be made depending on each particular case. Therefore, it may still be possible to get a mortgage but all will depend on your personal circumstances and requirements of your bank or building society.
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