Hi Everyone. My ex husband is buying a house for me and kids to live in. He is currently a phd student and will finish march 2012 then go abroad to start work, because of this finding a mortgage is hard! he has a 30000 deposit and wants to buy a house for 115000. One option suggested is a buy to let mortgage but (and here's the question) is this allowed?
Is it allowed to take out a mortgage in the UK if he lives abroad? Or is it allowed to take out a buy-to-let mortgage if your tenant isn't going to be paying rent? (I'm assuming he's not looking at you and your children as a business opportunity) If he's struggling to get a regular mortgage based on his current financial circumstances, I'm not sure he'll find it any easier to get a buy-to-let one.
The reason he is finding it hard to obtain a mortgage is because of the lack of income. The only way round this would be a self-certification mortgage and lie about his income source BUT IT IS FRAUD. Better off waiting until next year when he has a job.
thanks for you answers. i wondered if getting a buy to let mortgage for us to stay in the house was legal! Now i'm worried that he wont get one when he starts work as he's going to kurdistan! he has a 35k deposit and we're looking at houses around 110k. we want to buy asap but know that the situation is not an easy one! he is buying it as a long term investment for our ds and dd.
The BTL application doesn't ask who the tenant is and his income is irrelevant, but he does need to be employed in some capacity. They usually go on the market value rental income at 120% of the mortgage payment. Things to consider are does he have a residential mortgage in the uk. he also doesn't need to mention that he's moving away.