Jason Bailey

Expertly compared by Jason Bailey

Products Updated May 9, 2018

Buy to Let Mortgages For Self Employed

If you are self employed or have irregular income patterns and require a buy to let mortgage then our experts can help. Use the buy to let mortgage search engine to find and compare interest rates, fees, charges and application requirements. Speak with a buy to let mortgage experts for guidance on the mortgages that are available to you.

Free Buy to let mortgage advice and brokerage. Our experts can find you the best deals and have access to exclusive rates:

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Rated 5.0/ 5

Loans Warehouse Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

LTV
50% - 85%

Initial Rate
1.44% - 5.29%

Standard Rate (SVR)
4.99% - 4.99%

APRC
4.7% - 5.2%

The buy to let mortgage experts at Loans Warehouse can quickly assess your requirements and search the market place to find you the perfect mortgage deal. Click get a quote to make an enquiry today.

Are there any buy to let mortgages for self-employed people?

BTL mortgages for self employed applicants

BTL mortgages for self employed applicants

Self-employed people often struggle to get mortgages which would not be refused to employed people. Banks tend to regard people who work for themselves as unreliable, without a stable form of income, and therefore unsuitable candidates for a loan. While some self-employed people do struggle to meet mortgage payments every month, this is only a small minority, and others do incredibly well with their business and have no problems meeting any kind of payments. Being refused a buy-to-let mortgage is not very helpful if you want to move into the landlord business, for example, and might even stop you being able to move into a business which you are already qualified to run. Despite this bad news, however, it is still possible to get a self-employed buy to let mortgage.

Getting a buy to let mortgage from banks

Although some banks are unwilling to lend money to the self-employed, there are other ways to approach this problem. In fact, many banks are now actively trying to encourage people who are self-employed to get loans and mortgages. Under these new terms, buy to let loans are now easier to obtain. They no longer require a minimum income, for example, and if you have previous experience running a rental property, either working as a group or in renting out your own home, then you may be accepted for a loan by a bigger number of banks than ever before. This means that there are now more opportunities to get what you need from established lending societies.

What you will need

What you will need to secure your buy to let mortgage from the bank will depend upon your experience. Those who are able to turn small profits as landlords, even at the rate of £1 a year, the lender can offer to give you a mortgage under the new terms. If you make a pound profit, you have an income, and therefore meet the requirements of the lender. Of course, it is not always that easy, and you may not even want to get a mortgage if you only have £1 profit per annum.

You may also find success in getting a buy to let mortgage from the bank if you have other ways of demonstrating your wealth. For example, you may have experience of owning a rental property. If you can prove that you know what you are doing, and have been successful in this role, then you should be able to get a loan without any problems at all. The bank feels more secure that you know what you are doing.

Even if you can meet the new requirements of the banks, you will still have to pay a larger deposit than if you were paying for your own home. Deposits will start at around 25% of the total property value. If you can find this sum, then you should be able to get a reasonable mortgage for your buy to let property.

Other options

If you are not able to get a mortgage from your bank, then you don't have to give up on your dream of becoming a landlord. There are other options, including local lending societies, business grants and even raising capital in another way. Specialist buy to let mortgage brokers may also be able to help you fund your business. This means that, for self-employed people, there are still plenty of options for obtaining a buy-to-let mortgage. Reach out to any of these groups today, and you could start discussing how much you need to buy the property you want.

 

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