If you’ve applied for a buy to let mortgage through a high street bank, you’ll commonly find that they have a minimum income requirement.
The threshold is usually around £25,000 and needs to be revenue earned in addition to the rental income from your investment property.
However, this rule isn’t universal. There are certain lenders that Revolution Brokers works with that don’t have a minimum income cap, including products from lenders that only offer buy-to-let mortgage products through their brokerage network.
In this guide, we’ll cover a little more detail about minimum incomes and buy-to-let borrowing to understand better how this requirement works.
Do I Need a Minimum Annual Income to Qualify for a Buy-to-Let Mortgage?
If you rely on your rental earnings and don’t have an additional income stream, it can be pretty tough to find a buy-to-let mortgage from a conventional lender.
Typically, banks and mainstream buy to let broker providers have strict lending criteria and don’t have any ability to be flexible with their policies – resulting in automatic refusals if an applicant doesn’t tick one of the boxes.
More lenders are now recognising the growth in professional landlord businesses. You could be a strong candidate for a buy-to-let loan, regardless of supplementary income.
Revolution works with clients who can prove that they have sufficient revenue to afford the mortgage repayments without needing to meet a minimum income figure to be successful.
There are also other situations where estimating your exact annual income is complex, such as being self-employed or running a sole trader business.
Here, we’d suggest working through a similar process as for self-employed mortgage brokers and using trading accounts or tax returns to arrive at an average yearly income to show how you would meet the eligibility requirements.
Note that lending for self-employed businesses is slightly different for employees, so it’s wise to consult a broker even if you’re confident that you have a high enough annual income to pinpoint the right lenders for your borrowing needs.
How Can I Find a Buy to Let Mortgage Without a Minimum Income?
The easiest option is to work with a broker who can recommend mortgage products without a minimum income requirement.
Some niche lenders will lend without any additional earnings provided they can see that the rental investment property will offer sufficient returns to cover the interest costs comfortably.
In these scenarios, the landlord will usually need to be a homeowner to provide enough security and might be asked for a larger deposit.
Can I Get a Buy to Let Mortgage Without a Separate Income and a Low Deposit?
If you have a low deposit value available and don’t have a separate income stream from your rental investment, solutions are often possible.
For example, you could offer security against another asset as collateral or accept a longer term on your buy to let mortgage to reduce the monthly costs and achieve a higher rating on the affordability checks.
Most mainstream lenders and high street banks will have minimum income criteria, so searching through lenders online or price comparison sites won’t provide enough information to make informed borrowing decisions.
The best lenders often don’t pay to advertise through these platforms since they offer bespoke mortgage solutions arranged specifically around the buy to let applicant and the property in question.
Why Do I Need a Broker to Find a Buy to Let Mortgage Without Income Requirements?
The problem is that it’s extremely hard to find lenders and buy to let mortgage products that fit specific circumstances without knowing the rules and policies each lending provider has in place.
As a specialist buy to let mortgage adviser, Revolution Brokers provides a whole-of-market service. We can recommend thousands of products from approved lenders, which we feel offer you the best financing solution.
It’s also worth remembering that a buy-to-let lender who will accept your application but generally has stricter criteria might charge higher fees and interest rates to proceed, so it’s essential to consult a broker to avoid paying more than you have to.
Higher buy to let mortgage costs inevitably dent your profit margins, making it harder to secure future lending if your returns aren’t high enough to cover additional interest repayments.
How Can a Broker Help Me Find a Suitable Buy to Let Mortgage?
Whether you’re buying a first-time rental investment or expanding your portfolio of properties, our role is to match your needs with an excellent mortgage deal that aligns with your expectations and budget.
Industry knowledge is key, as for any mortgage product that falls slightly outside the standard criteria you’ll find across the buy to let lending sector.
Please contact Revolution Brokers on 0330 304 3040 or via email at [email protected] for more information about buy to let mortgages without income requirements and to explore the borrowing options available.