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If you live off investment portfolio, what is the best way to buy real estate with a mortgage loan? Do banks usually want to see that you're employed? Does this mean it's better to form a company and give yourself a salary? One option is also using margin loan from a broker where you use investment portfolio as collateral.
Depends how big you are and the mortgage cost tbh. Yes a Pledged asset line is an option, though it is a bit expensive.
But even if you go ahead and start paying yourself a salary, you're going to some history with that. Few months of salary aint gonna cut it.
A Lombard loan is easier and usually less expensive.
In some cases you might be able to agree with the seller a rent to own scheme.
You can also try Global
1. If you form a company and pay yourself a salary you will be seen as self employed in the eyes of a lender, you will need up to 3 years personal tax returns and they will also look at your company's annual accounts.
This is this process in the UK anyway.
2. A good option is to set up a SPV company. Do some research about SPV companies for purchasing property, there's a lot easily available on google. Essentially, the lender will not look at your income as the company is taking the loan. You will can then apply for a corporate buy to let mortgage. You will require minimum 25% deposit to get this type of mortgage - this can be sent from your personal account or another company account. The rental value of the property must also be sufficient to cover the mortgage payments. The property must also be habitable, i.e. does not look like it needs massive refurbishment in any pictures that the lender will see.
If you want to live in the property then rent it to yourself or someone else and live there - no need to tell the lender who will be renting it as long as they get their payment every month they won't trouble you once the mortgage is issued.
Speak to a mortgage advisor about best options for a SPV company mortgage.
3. Find someone who will put you on the payroll for 6+ months and get a residential mortgage, less deposit requirement and bigger lending capacity potentially. A traditional accountant won't provide this, you need to speak with your friends. Or get a job or a few months - you wouldn't catch me doing this option though.
