Moving from UK - Buy to let mortgages?

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kaz101
Participant
@kaz101
Join Date: 2005
Post Count: 45
February 6, 2006 - 8:28 am
Hi everyone,
We have a few properties in the UK and a couple of properties in Melbourne, and we are moving to Australia in July 2007.
In the UK there are buy to let mortgages in which the mortgage is based on the rental potential of the property and not just on your personal income. We haven’t been able to find a similar sort of mortgage in Australia but were wondering whether we were just talking to the wrong people. So many of you are property investors that it can’t all be based on your personal income!
Another ‘challenge’ is that my husband is self employed as a gardener so will it be difficult to get mortgages in Australia once we are there?
Any advice appreciated.
Thanks,
Karen
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
February 6, 2006 - 8:43 am
Karen,
Normally mortgages here are based on your income which includes rental income if buying IPs.
If you have a higher deposit this can be waived with a loan purely lent against the asset with no income/employment required. Typically a 30% deposit is needed here.
You need to speak to a broker to get some detailed guidance on the different loans here.
The brand new self employed income stream doesn’t need to be a problem with higher deposits as well.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 7, 2006 - 2:40 am
Hi Karen
The Buy To Let style mortgage in the UK has been around for around 20 years and was certainly popular in the 80’s.
However in saying that the lodoc and no doc market is the UK is more mature than Australia and up until 1991 CSBC used to offer a 75% LVR with a valuation only and no other references at standard housing rates.
Many clients of mine at the time filled their boots with this product.
As Simon has mentioned Australia is still in the early days of development in product range although a standard 70% nodoc is ready available with several lenders.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]
Richard Taylor | Australia's leading private lender