UK question: Can you get a mortgage if you are unemployed?

Question

SInce being laid off I have been looking for work, but havent found anything in my field. But in the meantime I want to buy a flat and let it, as the rental income should take care of the mortgage. Are there any lenders out there who provide this kind of mortgage? Please give sources for your answers where possible.

Ps - although i am not working i have some savings which will take care of deposits, solicitors fees and surveys etc.

Thanks for your responses. Hmmm .. isnt it funny how some people have said I was nothing short of crazy to ask this question and yet some of the responses indicate that it IS indeed possible!!

Answer 1

yes you can but you need to see a broker, this kind of mortgage needs dealing with properly - you can't just apply to the lending institutions that finance these sort of deals. Some lenders will lend up to 95% on Buy to Let. Need any help e-mail me or visit www.marshallfinancial.co.uk - Good Luck PS - BUY TO LET PROPERTY MORTGAGES ARE BASED ON RENTAL VALUE AND NOT INCOME - THEY ARE UNREGULATED UNLIKE OTHER MORTGAGES.

Answer 2

Mortgages For Unemployed

Answer 3

You need a buy to let mortgage to rent the flat out. There are many lenders in the UK that offer this type of mortgage however, you will usually only be able to raise 85% of the purchase price of the flat so you wil need the deposit plus legal fees, survey etc. A buy to let mortgage is usually based on rental yield so being unemployed is not a bar in this case.

One down side is that if you are a first time or inexperienced land lord then the lender may ask for a minimum income in which case, this would currently rule you out.

Also, please be aware that if you are unemployed and you have no tenant in the property then you will need to maintain the mortgage or run the risk of default and repossession.

Contact me if you have further queries.

Answer 4

No. You have to have proof of income and a good credit rating. Mortgage lenders would never take the risk. If they did then everyone would give up their jobs! Two words come to mind -DREAM WORLD!

Answer 5

of course if you do not have any means of regular income, you will not be able to pay off the mortgage.

there is a risk that the flat doesnt get rented out - that risk the bank does not take.

you have to show proof of sufficient income to (1) pay the mortgage regularly (2) upkeep yourself independently from that income

if above two are not satisfied, mortgage will not be granted.

Answer 6

No mortgage company will give you a mortgage without proof of long term income as you will have to show you are in a position to continue paying for such a large investment x

Answer 7

You will need 15% deposit if you are buying to let....So on a place costing 150k, you need 22.5k. I enquired myself last year when thinking of buying a place to rent out, but no way could I afford that kind of deposit. However, I only went to one mortgage company so could be different advice.

Also, if you are not working and the place doesnt get rented out, you are high risk, so reckon thats a no.

Answer 8

Worldwide: If you want a legitimate mortgage from banks then answer is no. You need income to get a mortgage unless yr savings is generating enough income which can subsitute as salary.

Answer 9

no..you must have an income. it could be from a trust fund but mortgage lenders usually want you to have a steady job for 3 years+

Answer 10

Yes you can but you have to show some money. For example another house with equity, stock options, whatever with value that would repay the mortgage if something goes wrong.

Good luck !