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Potential Rental Income - counts for Residential mortgage?

tom9980
tom9980 Posts: 1,990 Forumite
Part of the Furniture 1,000 Posts Name Dropper I've helped Parliament
in Mortgages & endowments
The house i live in is currently jointly owned with my Dad outright which we plan on renting out when me and my wife move into our own place.

I am a student at the moment my wife is a Teacher on about £27k, we have a large deposit and we want to buy a new property that will require a mortgage is it possible to use the potential rental income on a mortgage application even though its not let out yet? is that even possible? I have tried searching for this scenario but its mainly throwing up buy to let advice which is not relevant.

I am assuming the bank would want to see solid agreements and regular rental on bank statements for this to be possible but you never know.

Thank you in advance.
When using the housing forum please use the sticky threads for valuable information.

Comments

  • GwylimT
    GwylimT Posts: 6,530 Forumite
    1,000 Posts Combo Breaker
    Generally no, rental income is not considered secure income.
  • ACG
    ACG Posts: 24,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    The short answer is no.

    Once it has been rented out for a year or 2 and has been declared as income to the tax man and their is evidence its a reliable income some lenders will accept it.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, 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.
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Do you even need it to get the mortgage?


    How much are you looking for?
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, 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.
  • tom9980
    tom9980 Posts: 1,990 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've helped Parliament
    Wh05apk wrote: »
    Do you even need it to get the mortgage?

    How much are you looking for?

    That's a good question

    assume 100k deposit minimum as much as 125k of our own cash.
    I can borrow another 80k from my dad. (yes i know they dont like gifted deposits)
    The House we like is up for 300k i think its worth 275k.
    The house we live in and is joint owned is worth about 115-120k rental income is £575 a month.

    My income is zero right now.
    My wifes is 27k take home is £1585 a month after pension, student loan etc.

    Trying to piece together the puzzle
    When using the housing forum please use the sticky threads for valuable information.
  • ACG
    ACG Posts: 24,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Assuming that £80k is a gift and not a loan, it should be achievable on your wifes income alone.

    If there is a mortgage on the existing property then £7k before deductions is not going to go that far anyway. Even if it is mortgage free its not going to be enough to have a huge impact one way or the other.

    I think you need to go and speak to a broker and let them get everything down on paper and do the research.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, 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.
  • Dave_Ham
    Dave_Ham Posts: 6,045 Forumite
    Tenth Anniversary Combo Breaker
    As suggested, pretty confident this can be done without rental income although speak to a broker formally as lender selection crucial

    All the best
    I 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.
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