BUY TO LET MORTGAGES WITH BAD CREDIT

Buy to let mortgages with bad credit are designed for people who have faced credit issues or financial difficulties in the past. This type of mortgage is suitable for those who intend to purchase a property primarily for renting it out rather than for self-occupation.

Typically, a buy to let mortgage with bad credit incurs higher interest rates and fees than a regular mortgage. The additional costs are due to the greater risk associated with lending money to people with a poor credit history. The lender assesses the borrower's financial situation and credit history to determine the interest rate and whether to approve the application or not. Speak to us at ams: and we will work hard with lenders to secure the best mortgage for your needs.

If we can’t help, then it’s not possible!

Acquiring a buy to let mortgage with bad credit is feasible, although it may be more challenging to locate a lender who would sanction the application. Poor credit is viewed as a high-risk factor by lenders and can adversely affect the likelihood of approval.

Certain lenders may reject the application outright, whereas others may propose higher interest rates, demand larger deposits or additional collateral to offset the risk. When deciding whether to approve the application, lenders also examine the severity of the adverse credit and the financial status of the individual. Here at ams: we work closely with many lenders and will collaborate with them to handcraft a mortgage solution for you.

The specific requirements for eligibility for a buy to let mortgage with bad credit can vary between lenders, but some common criteria include:

• The applicant must be at least 18 years old
• The applicant must hold a UK bank account
• The applicant must earn a minimum annual income of £25,000

With many lenders the applicant must provide a deposit of at least 25% of the property's value (N.B, at ams: we may provide access to lenders who accept a lower deposit level)

• The property should have a high rental income potential
• The applicant's credit history should be satisfactory, or they should provide a clear explanation of past credit issues
• For many lenders, the applicant ideally should not have any outstanding County Court Judgments (CCJs) or bankruptcy declarations. ams: are likely to be able to provide support even where a CCJ is still outstanding
• The applicant must provide proof of income and affordability, such as payslips, bank statements, and tax returns
• The applicant should have a plan in place to manage the property effectively

Within an hour, ams: will be able to tell you whether your application is likely to have a successful outcome.

If we can’t help, then it’s not possible!

If you have bad credit and want to enhance your chances of getting approved for a buy to let mortgage, there are several steps you can take:

• Check your credit report - review your credit report to ensure that all information is accurate and up to date. If you spot any errors, you can dispute them with the credit reference agencies
• Pay off outstanding debts - reduce your outstanding debts as much as possible, as high levels of debt can negatively impact your credit score and affordability
• Build a good credit history - make sure that you make all your credit repayments on time and in full. This can help to improve your credit score over time
• Save a larger deposit - having a larger deposit reduces the lender's risk
• Provide evidence of rental income - if you have a property or plan to rent out the property you want to purchase, providing evidence of potential rental income is essential
• Work with a specialist mortgage broker - a specialist mortgage broker (like ams:) can help you find lenders that offer buy to let mortgages with bad credit and guide you through the application process

It is important to note that these steps do not guarantee approval, they all help to improve your prospects of being approved for a buy to let mortgage with bad credit.

Yes, a mortgage broker (such as ams:) can help you navigate the complex mortgage market and identify lenders who are more likely to approve your application based on your individual circumstances.

As a specialist mortgage broker, ams: have knowledge of the lenders who are more likely to approve applications from borrowers with bad credit and can guide you through the application process. We also understand the eligibility criteria, interest rates, fees, and terms and conditions of different buy to let mortgage products.

We will help you to compare different mortgage offers and choose the one that best suits your needs and budget. This also applies to a remortgage buy to let with bad credit and not just first time applications.

The eligibility of properties for buy to let mortgages with bad credit may vary depending on the lender's requirements. Generally, the following types of properties (as just a few examples) may be eligible for this type of mortgage, including a remortgage buy to let with bad credit:

• Standard residential properties - properties designed or converted for rental purposes
• Houses in multiple occupation (HMOs) - properties that have multiple tenants sharing amenities such as bathrooms and kitchens
• Semi-commercial properties - properties that have a commercial element such as shops or offices along with residential rental units
• Holiday let properties - properties that are rented out to vacationers on a short-term basis