Do banks include rent income towards a mortgage?

lofidelity

I have sold my property and have money to put towards a deposit. My girlfriend would like to rent out her property and use the income to add to mine but we're not sure if, or how, banks include that in the deposit total. Does anyone know, please?

Annisele

If your girlfriend is renting out her property (i.e. not selling it) then I don't see how she can use it towards the deposit - she hasn't actually released her equity.

Wh05apk

Some do if you have an excess over the monthly mortgage on the property, but normally only allowed on "reduced multiples"

herbiesjp

If the property is unencumbered i.e.no mortgage on it - they could take it into account (some will only take part of it into account).

If there is a mortgage on the property, they will not normally take into account - as this income is used in order for this mortgage to be "ignored" for affordability calculations on the new purchase.

coldstreamalways

I rent a flat out and bought a house, the mortgage company said if I didn't have consent to let then I would have to have a much higher income in order for them to lend me the money. I got this then had to also send them a rental valuation.

One word of advice, don't do it if you can't easily afford for it to be empty. Not only will you lose rent but may have to pay council tax etc etc. Sleepless nights ahoy regardless!