“Is it possible to obtain a buy to let mortgage without proving income?”
This is a question I am asked frequently.
Well, there are a number of buy to let lenders in the market whose criteria stipulates no minimum income however this is not quite the same as having no income whatsoever. Applicants in these cases must still be able to provide evidence of an income regardless of size.
You may be surprised to know just how small that income can be. I recently refinanced a client’s portfolio of 11 properties at up to 85% loan to value, raising significant capital at the same time. Although the client’s annual profit was well under £10,000, the lenders main concern was to satisfy themselves that the subject properties were self financing. As long as the applicant was able to provide evidence of an income and also demonstrate that they were financially stable the lenders were happy to lend.
There are some lenders that will lend to the self employed without sight of accounts or tax returns. For example one lender will lend if an applicant has been trading for at least 1 year (3 years if primary business is property letting) and can provide bank statements to show that they are managing their finances satisfactorily. These products are not available to either first time buyers or first time landlords.
It should be remembered that responsible financial institutions guard their reputation and are keen not to be seen to be either condoning or encouraging tax avoidance, however having said that there may be legitimate reasons why tax returns or accounts are not available or showing losses.
The merits of each case need to be assessed on an individual basis, if you would like to discuss your personal circumstances or request an illustration then please contact me.