Leniancy??

trooperdog

are lenders anymore leniant with BTL than residential??

Im fully aware of all the factors with residental mortgages (affordabilty, credit raing etc etc). Just wondered if BTL lenders are any different?

BoGoF

Probably stricter these days

trooperdog

Cheers BoGoF. Any reason in particular, do they take the rent into consideration when calculating affordability? I have a REmortgage post on here yesterday that explains my situation Im off to see a WoM broker on fri but would just like to do my homework first.

somethingcorporate

BTL is usually done on rental income and often only has a small consideration for personal income (often in the form of minimum salary expectations of ~£25k).

trooperdog

Cheers SC my income is 33k house purchase is 70k looking at 25% or 20% if poss deposit mortgage over 25 years around 370 @ 6% rent at around 525 PCM shouldn't be any problems really should there??
but then this is only half of the story ha!!

domcastro

Each lender has different criteria. With C&G you need to earn over 38k for a BTL mortgage and the mortgage has to be 60% of the rental income (If I remember correctly)

mij544

A rule of thumb is rental income needs to be 125% of the mortgage repayments if the interest rates were 6%.

The exact criteria varies from lender to lender, but this is worth remembering as a general guide.

somethingcorporate

I don't see any problems with your figures, you may want to go and see a broker to make sure you only apply to lenders you have a chance with (and there will be some on those numbers).