Buy to let mortgage self employed
How to get a buy to let mortgage when you are self employed
Self-employed buy to let mortgage
A self-employed buy to let mortgage is just the same as a standard buy to let mortgage. You can access the exact same lenders and your employment status is irrelevant, so long as you meet the necessary requirements.
You will generally need a 25% deposit and some mortgage lenders will want you to have a minimum income of £25k. However, if you can’t prove all your income, many lenders will allow you to use your property’s rental income instead, which should be 125 – 145% of your monthly mortgage payments. If you already own a property, you will also need to pay a 3% second property Stamp Duty Land Tax (SDLT) surcharge in addition to the standard rates.
Buying property through a limited company
As the income you earn from your property will be taxable, you should seek professional advice on how best to manage your personal income affairs. Some accountants will suggest purchasing a property in a limited company name. This can help to reduce many higher-tax payers bills, but it will not suit everyone’s needs.
Buy to let self cert mortgage
A self cert mortgage historically enabled borrowers to obtain a mortgage without proof of income. This type of mortgage was essentially made redundant in 2009 when the Financial Conduct Authority (FCA) introduced new ruling which resulted in lenders needing to verify each applicant’s income. However, buy to let mortgage lenders can use your property’s rental income for their affordability calculations. So, if you are struggling to prove all your personal earnings, there are still options available.
Why use a mortgage broker?
Whilst buy to let mortgages are now widely accessible, they are far from straightforward. As buy to let mortgage specialists, we know all their quirks and the best lenders to approach to help you get the right product for your individual needs and circumstances.
If you are interested in discussing your options, then get in touch and speak to one of our experts. Our advice is completely free and is offered with absolutely no obligation!
The Financial Conduct Authority does not regulate most buy to let mortgages.