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Additional income from buy to let
freddieb_2
Posts: 3 Newbie
Hi, we're looking to remortgage to move house. Right now we only have £3k left on our current mortgage.
As my partner stays at home with our newborn, I'm the sole earner. Although we do have two buy to let properties, which bring in £20k before and £10k after expenses (including mortgage payments).
Is it likely a mortgage provider would consider my income outside my main salary (£40k). If so, would they look at the income of the profit from the rental properties?
Having access to finance for 4x salary and 4x the rental income would mean we can get a property we want. I'm happy with the increased risk looking at my salary projection.
Thanks!
As my partner stays at home with our newborn, I'm the sole earner. Although we do have two buy to let properties, which bring in £20k before and £10k after expenses (including mortgage payments).
Is it likely a mortgage provider would consider my income outside my main salary (£40k). If so, would they look at the income of the profit from the rental properties?
Having access to finance for 4x salary and 4x the rental income would mean we can get a property we want. I'm happy with the increased risk looking at my salary projection.
Thanks!
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Comments
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Having access to finance for 4x salary and 4x the rental income would mean we can get a property we want. I'm happy with the increased risk looking at my salary projection.
and servicing the BTL's if there's no income?
Why not sell one and utilise the capital.
Affordability will also be based on you having 2 dependents. So 4 times may be pushing the boundaries.0 -
Is it likely a mortgage provider would consider my income outside my main salary (£40k). If so, would they look at the income of the profit from the rental properties?
!
Yes, they'll certainly look at it.
Whether or not they take it into account for affordability questions is another matter, and in order for them to do so you'll need to provide proof (accounts, tax returns, banks statements, etc) showing a consistent pattern of the income over a long period of time.
Even then its likely they'll only allow part of the income for affordability calculations, in order to cover unexpected costs or voids.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Thanks. We have only had the properties for 9 and 6 months, so I am expecting they'll only consider it after 12 months.0
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It totally depends upon the lender.
Many will not accept, others after 1 year and a few will accept now.
The lenders that will include as income will have fair rates, but not neccessarily market leading
Good luckI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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