Buy to let mortgage with no earned income?

Thursday 20 October 2016 | 03:40 PM

Buy to let mortgage with no earned income?


Following up on our last blog regarding the recent and proposed changes to tax relief available on buy to let mortgages, we thought a follow up was needed.


We are often approached by those looking to add to their property portfolio or buy their first investment and asked to advise on whether a joint or sole name purchase is more beneficial from a tax perspective.


Whilst we are not tax advisers (but do know some very good ones!) there potentially can be benefits in buying the new property in the name of the person with the lower “earned” income or ideally the name of a non-working partner.


Most lenders require the mortgage applicant to have a certain level of earned income for example £20,000 or £25,000 as a minimum. However, this is not always the case as some lenders do not require a minimum level of earned / background income at all (other lending criteria will apply).


Consequently, in a scenario where a higher rate tax payer and a non-earning partner are considering a new investment, they could secure significant income tax advantages if the property and mortgage can be secured in the sole name of the non-tax payer.


This is a complex area so a full review of underlying circumstances would be needed - we can do this on an initial no obligation basis, so what have you got to lose?


Whether you are looking to buy your first investment property or add to your portfolio, move house, re-mortgage or review your insurances, why not take local, face to face, independent mortgage and loan advice to smooth the whole process. We would be delighted to help.


Paul Hardingham and Tony Ibson are Mortgage and Protection Advisers at Innovate Mortgages and Loans. Both have over 20 years of experience advising individuals and businesses across the North East of England. They can be contacted for bespoke advice at or or call 0191 223 3514.


Think carefully before securing other debts against your home.


Your home or property is at risk of repossession if you do not keep up repayments on a mortgage or other loan secured on it.


Innovate Mortgages and Loans is a trading style of Innovation Financial Management Ltd.