Don’t let your changing circumstances hinder your chances of securing your dream investment property. It’s still possible to secure a Buy to Let (BTL) mortgage if you’ve entered into a new role recently – you just need to find a company that works according to more accommodating eligibility criteria.
At CLS Money, we excel at finding specialist BTL mortgages for employees who are still working through their probation periods. Here’s what you need to know about securing finance for your next property investment.
What to consider when applying for a Buy to Let mortgage
A Buy to Let mortgage is designed for people who are looking to purchase additional property and rent it out in order to make a profit on their initial investment. In the UK, there are no limits on how many properties one person can own – so, as long as you understand your responsibilities and duties as a landlord, it can be an incredibly lucrative way to generate capital.
When looking for a Buy to Let mortgage, price is a very important factor, as it will directly affect the viability of your investment. When working out how much you can afford, you will need to consider how much you will need to set aside for the payments on your residential mortgage (if you have one), as well as any other financial commitments that could affect your ability to keep on top of your BTL mortgage repayments. Remember, too, that Buy to Let deposits are significantly larger than those for a standard residential mortgage. You will usually need a bigger down payment to not only secure a mortgage in the first place but access the most competitive rates.
Buy to Let mortgages have been notoriously difficult to obtain in the past due to stringent income and affordability checks, not to mention volatile markets. For the best chance of success, it’s important to explore all your available options before making a decision on which lender to use.
How will being in a new job affect your BTL mortgage application?
If you’ve just started a new job, you may find it difficult to track down a lender who will be willing to offer you a Buy to Let mortgage. This is because you’re seen as a higher risk due to the fact you are likely to be in a probationary period, and so your employment – and therefore your income – is not yet guaranteed.
Some lenders will advise that you need to have been in your role for at least six months before applying for a mortgage. Many will ask for evidence of employment from the past one to three years. But not everyone can provide this kind of information – especially in these turbulent economic times.
Thankfully, there are specialist lenders in the market who will consider your application even if you’ve only just started out in a new position.
One of the factors that may help your application is if you’ve been in continuous previous employment before beginning your new job. This will evidence your usual level of income and ability to meet your repayment schedule(s). You’ll also need to prove that the rental income on your property will be more than enough to cover your BTL mortgage payments (usually at least 25% higher).
If you’ve just started a new job and are looking to take out a BTL mortgage, we would advise that you speak to a specialist broker who will be able to point you in the direction of lenders who are more likely to accept you. Getting expert advice now will stop you from wasting time and potentially damaging your credit score further with repeat credit checks.
Why use a mortgage broker?
If you’re thinking about approaching a specialist mortgage adviser, there’s no time like the present!
Our team are available throughout the week to provide you with free, no-obligation quotes, not to mention a tonne of advice on what kind of rates and terms you should be looking for from your lender. We even have appointments available in the evenings and at weekends, so you can spend your days impressing your new boss and take care of your future investments outside of your 9 to 5.