HMO Mortgage for Applicants with no personal income
ost lenders want to see what level of income an applicant has, but what about applicants who do not have any personal income? There are situations where individuals have savings, or a lump sum from an inheritance, or a redundancy package, or an annual allowance from parents etc. but no actual income. New changes to pension legislation, even makes it possible for a person to take the entire fund from a pension plan. These individuals may have no annual income, but they may still want to invest in the property market.
Potential applicants can be students, a housewife/homemaker, someone recently made redundant, or recently retired etc., in fact anyone who has capital to invest in UK residential property. The lender will not require a guarantor and will not require a second property as additional security
A wide range of properties can be accommodated. Mortgages are available for purchase, or remortgage. For properties being purchased at below market value, the maximum mortgage will be the lower of a) 85% of property value, or b) 70% of purchase price. No income proof is required, but applicants will need to provide evidence of deposit funds. Mortgages are on an interest only basis.
Applicants can be students, a housewife/homemaker, someone recently made redundant, or just taken early retirement etc., in fact anyone who has capital to invest in UK residential property, but is not employed, or self employed and has no income. No guarantor is required and no additional property is required, as additional security.
- Part time employed or self-employed with no income proof
- Recently retired or made redundent from employment
- Students, housewife or homemaker without income
- No guarantor necessary
- No BTL letting experience required
- Adverse credit history can be considered if over 3 years old
First-time buyers are accepted, as no letting experience is necessary. Applicants must have appropriate identification in the form of a Passport or UK Driving Licence and evidence of their residential address. A certain amount of adverse credit history can be accepted but none in the last 3 years. Any previous CCJs, defaults or missed payments should be stated with a written explanation. Evidence of deposit funds will be required.
- Evidence of deposit funds ( Bank account statement )
- Residential address history for 3 Years
- Acceptable explanation for any adverse credit
Types of property
Houses of Multiple Occupation (HMO). Semi-commercial properties can also be considered. Applicants who have some experience of letting property are preferred, but this may not be essential, subject to applicant’s circumstances.
- Single Residential Buy To Let Houses
- Houses of Multiple Occupation (HMO)
- Semi commercial properties considered
- Properties in England only
- Minimum property price/value is £200,000
General Lending Criteria
Residential: Mortgages are available for purchase, or remortgage. Up to 85% of purchase price when buying at under market value, or up to 70% of property value (whichever is lower) can be borrowed and this is on an interest only basis for up to 3 years.
Commercial: Mortgages are available for purchase, or remortgage. Up to 65% of purchase price, or property value, can be borrowed and this is on an interest only basis for 3 years.
- Mortgage term is 2 or 3 years only - designed to be a short term solution
- Minimum loan size is £100,000
- Purchases or Remortgage
- Interest only
- No proof of applicants income required
- Evidence of deposit funds required
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Cash deposit in savings but no income
Residential Multi-let Investment
Contact us on 0117 223250 to discuss your requirements with a Buy To Let mortgage specialist
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We can even complete the mortgage application on your behalf. The mortgage adviser can help you complete the application over the phone or email.
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