Buy to Let mortgages.. minimum mortgage amount

[sal]

100k lower limit is not a contractor specific. I bet you will have much better chance in googling this or posting in a specialist forum for mortgages.

[Power Mortgages Ltd]

BM Sols need you to have been self employed for 2 years so that won't work. Be careful though because a lot of the time BM Sols do not ask for proof of income so some brokers use them as a kind of 'fast track' lender hoping that they can submit the application and it will go through without BM Sols asking for proof of income. Of course if they do and you have not been self employed for 2 years then it will be declined and you could lose out on any fee you have paid to them so far.

There could be options, yes. TMW (The Mortgage Works) maybe able to assist. They do not ask for proof of income if you own your own main residence (owner occupier) and you are an 'experienced landlord' which means you have owned and let out a buy to let property over the last 6 months.

If you do not meet the above criteria that doesn't rule TMW out, they will do a sensibility test to see if what you are looking to do is plausible. If you lived in a one bed flat worth £100,000 and were looking to buy a £500,000 4 bed detached then it would look as if you may be applying for a buy to let mortgage on what is likely to be your new home, e.g. committing mortgage fraud so it would likely fail the sensibility test but if it were the other way around it would be more appropriate that you were buying the new cheaper property as an investment. If you already hold investment properties in the same area for the same kind of values then that will add weight too.

Most lenders require you to prove a background income when applying for a buy to let mortgage even though affordability is mainly based upon the rental income the property is likely to achieve. They wish to know that if ever there was a period where the property is untenanted then you would be able to service the mortgage with your own income. It is only one or two lenders who do not need you to prove a minimum income (BM Sols being one of them) but they do insist if you're self employed, you have to have been self employed for 2 years minimum.

I believe that the contractor broker you have spoken to is referring to a Clydesdale mortgage as their minimum loan is typically £100,000 but even still if you have not contracted 2 years then strictly speaking you'd need to put down a 30% deposit although Clydesdale would probably do it on an exception with 25% deposit as it is buy to let but the minimum loan amount will still apply.

I think TMW are your best option.

[barrydidit]

I've recently taken one via Yorkshire Bank for £45k. The loan amount was never queried, in fact they were happy to lend just £35k, I took the higher amount because of the LTV bandings. This wasn't a contractor specific application, just via branch. They used 1st years signed off accounts and previous permie P60's to underwrite.

I'd have thought you'd expect the same principle to be applied via Clydesdale who are in the same banking group and operate north of the border.

As an aside, I think the absolute legal minimum is £25k. I don't recall why but it could be to do with personal loans covering lending up to that amount.