Bad Credit Buy to Let

The Buy To Let mortgage market has changed dramatically in 2021 due to the changes made by HMRC in how the tax position will change in 2020. With this in mind we are seeing most clients now using an SPV to purchase an investment property, and all clients would be advised to discuss their personal position with their accountant or a suitably qualified Tax Advisor to make sure what would be the best course of action for them to take.

In the current market we would normally expect to achieve 75% LTV but the opportunity to raise this to 85% LTV is there subject to the credit profile, the experience of the client and the rental income.

Please note the information below is a snippet taken from https://www.gov.uk/renting-out-a-property/paying-tax

Running a property business

You have to pay Class 2 National Insurance if your profits are over £5,965 a year and what you do counts as running a business, for example if all the following apply:

• being a landlord is your main job
• you rent out more than one property
• you’re buying new properties to rent out

If your profits are under £5,965, you can make voluntary Class 2 National Insurance payments, for example to make sure you get the full State Pension.

• Late or missed payments on credit arrangements
• Mortgage arrears
• Defaults on credit arrangements
• Poor conduct of your bank account
• County Court Judgments ( CCJ’S )
• Previous repossession
• Bankruptcy
• Individual voluntary arrangements.( IVA )
• Can you be found on the electoral roll( IVA )
• Debt management.

• How long have you been in your current employment
• Is your employment permanent
• Are you on the electoral roll
• Are you servicing your current commitments in a satisfactory manner?
• Your age
• Type of employment
• Will your travelling expenses increase by moving
• Is the property construction going to raise any problems