Showing additional income for mortgage (first direct)

b21playa

Hi all

Currently living with my parents and rent my own house out and declare income via self-assessment.

Now I owe nothing on my house, and wondered what figure mortgage lenders would use. Would it be just be rental income, or wou,d they deduct expenses relating to it.

If tax year 20011-12 I got just over £4k on income, put £1.5k in expenses. Would they use the £4k or £2.5k?

I earn circa £34k and looking at a property for £175k, putting down 10% deposit. My bank first direct do 90% mortgages. If they will not offer the mortgage in my name only, I could add my sister to it.

_Andy_

Have you asked First Direct?

Let_Us_See

The vast majority of lenders will not accept your rental income when assessing affordability for a residential mortgage as it is not guaranteed income.

kingstreet

I can think of one or two, off the top of my head, who will take some of the rental income into account where the property is unencumbered.

The only way to know your lender's policy is to ask your lender.

Thrugelmir

b21playa wrote: »

If tax year 20011-12 I got just over £4k on income, put £1.5k in expenses. Would they use the £4k or £2.5k?

£2.5k as this is net profit.

That's if they accept this source of income.

maninthestreet

£4K income p.a ?? Sell the house you own, use that to buy another property to live in?

Edit - sorry, that's your rental income...