Rental Income Against New Mortgage

KaesarSosei

Hi,

Can anyone confirm that if I have a standard residential mortgage, or even a buy-to-let mortgage, that any other mortgage lender will not take into account rental income when calculating my affordability?

I am planning to rent my current house out in the next few months during a self build but it has been suggested that in the current climate lenders will not feel safe 'writing off' the mortgage on that property when deciding how much to lend me.

Thanks

powerwin

Just to clarify, are you saying that when you apply for a second mortgage for your new property, you want a mortgage lender to be prepared to ignore the fact that you already have a mortgage on your existing property because you are renting it out successfully and it is taking care of itself?

Rgds

KaesarSosei

Yes that is a much better way to put my question :embarasse

Let_Us_See

If you have a residential mortgage then the answer is no! It makes no difference if it is rented or not, your existing mortgage will show up on any credit search.

If you have a BTL mortgage then it could be classed as self-funding, but you will have to apply the lender's own affordability calculations rather than just claiming rental income is greater or equal to your monthly mortgage payment.