Rental Income

yorkgate

Interesting you should say that. I approached two different brokers. Basically, I asked them the questions as outlined above, offered to pay for their services and advice. Their answer was always " I really don't know".
They both refused payment and were extremely courteous. They both favoured BM BTL mortgages as a solution. I would have thought it was a fairly simple question - do Halifax accept rental income as affordability if confirmed by SA302s - something that you could find out about with a simple phone call - but there you go.

Funny_old_game

They will allow rental to support affordability as long as the BTL's are mortgage free for at least 3 years, so clearing the balances won't help. Then as you have done follow their normal self employed criteria. Re SA302's.

Refer to the links above from the brokers.

yorkgate

Thanks for the info Funny old game, I wasn't aware of that, 3 years is a long time. Not sure what you mean by following the Broker links regarding the SA302s. Do you know if these are accepted by the Halifax as confirmation of net rental income?

yorkgate

For Funny old game, GMS, Dave Ham and any other posters.
Wish someone could give me a straight reply to the question - Do Halifax take rental income into account re. affordability if confirmed by 3 years SA302s. GMS - you mentioned a recent case when the SA302s were accepted - do you know if this is the case with the Halifax?
I want to make clear to Financial Advisers that this is not a mortgage application or remortgage - it is an interest only mortgage shortly coming to end of term for which I have to do a mortgage review. The OS balance is only 25k with excellent equity and I have been making overpayments so that if the term could have been extended I would have it cleared within a few years. Have tried contacting Halifax but always up to 20 mins waiting time on phone so give up.

GMS

You need to get a broker on this or speak to the lender and get their answer.

Halifax BDM told me that rental income on SA302's will carry all expenses already deducted so the profit could be used as is. Please note I didn't say it was accepted just that it reduced affordability in the calculator.

You have had as good a reply as you will get without somebody having full details of your case and running it by a BDM.

I'm assuming your earned income is insufficeint for what you require?

Dave_Ham

We are not being deliberately vague, but working in a regulated environment we cannot suitably assess your circumstances from a few bits of information on a public forum and confirm your question.

I assumed this was a remortgage/purchase until the most recent post and there is no substitute for formal advice.

Persist with Halifax or engage a broker formally.

Best of luck

yorkgate

GMS and Dave Ham, Thanks for the replies. I appreciate it. The mortgage term finishes in a couple of months, so I don't really have time to jump ship. My circumstances are probably the same as thousands of people out there - I have an interest only residential mortgage which hasn't been quite paid off. Been making lump sum overpayments the last few years, so my record demonstrates given a few more years the balance would clear. I assume I have a good credit rating. It never really bothered me - from what I know they just put you on a repayment mortgage when the term ends. Then I just happened to go through the Halifax intermediaries site and noticed all the criteria re rental income - with rental included there is no problem, without I would probably scrape through. GMS, if the SA302s rental income can be used as profit, there shouldn't be any problem for meat all. From what I can gather that's the way it is with all the building societies - Halifax's is a bit confusing because they don't seem to make allowances for encumbered properties re. affordability on their calculator. I was probably being a bit paranoid because I absolutely hate this kind of stuff and would much rather have let a broker handle it. But I got the distinct impression from the 2 brokers I met with that whilst they would have done a complete remortgage for me, if I stuck with Halifax I should just do it myself - perhaps they felt they couldn't justify their fees for a small mortgage review or didn't have contacts with Halifax - don't really know.

GMS

Engage a broker. Be prepared to pay a fee even if only to handle a transfer.

Ultimately a good broker will get you what you want and prevent problems.

rbinscotland

Seems to me reading through the posts on here that the criteria (questions, set by the broker, online or face to face) should include a few more questions to allow the broker or particularily online applications to give an acurate reply.
I say this only because as a private landlord - only income from what i have seen as my job for the last 12 years - earning income / salary or whatever you wish to call it. (it income for tax purposes, and it pays my bills and car and residential property; but not income by Halifax or Woolwich / Barclays) Like previous folk on this thread I have shouwn S302s and it showle INCOME - then unfortunately says " from rental income". If I was in a different game like smuggling it would probably say Income only (if i was thet way inclined to inform the tax office of my job in this case- Im just playing deils advocate - sorry) But why dont the Mortgae companies who add themselves on site like this and other well know "help sites" include the simple question do you earn money from your property and is the only form of Money coming in (I tried not to use Income) as in thier eyes it isnt.
Summing up.


Does anyone know a site that will allow these questions and possible others are asked before the form filling the broker fees and times are wasted.


I also understand that the number of properties is also an issue. some you can have 10 in total some only 3 and with the said company where some will allow 10 with one company.


It just is not clear.

amnblog

Lenders don't like 'rental income' as a main source of income.


Income from property gives them question marks whether you are borrowing for primary residential purposes or doing back door development.