Additional income for mortgage application

soapstar88

Hi,

What types of income are usually accepted as 'additional income' when applying for a mortgage?

I earn additional income to my day job from a Furnished Holiday Let (FHL) and have just recently completed my first year of tax return for period April 2013 - April 2014. I originally thought I will need 3 years proof of income before this can be considered? hopefully this isn't the case as it would help me greatly!

Thanks!

kingstreet

This will vary from lender to lender and will be influenced by the presence of a mortgage on the property.

Speak to an independent broker to establish your options based on an analysis of your circumstances.

soapstar88

kingstreet wrote: »

This will vary from lender to lender and will be influenced by the presence of a mortgage on the property.

Speak to an independent broker to establish your options based on an analysis of your circumstances.

Hi,

Thanks for your advice. The property in question does not have any mortgage outstanding. But i struggle to see how they can take this income into consideration as it may end during the period of the mortgage (25 years).

Bad_Ash

soapstar88 wrote: »

Hi,

Thanks for your advice. The property in question does not have any mortgage outstanding. But i struggle to see how they can take this income into consideration as it may end during the period of the mortgage (25 years).

But similarly people could be made redundant, etc. during the term of a mortgage.

InsideInsurance

soapstar88 wrote: »

Thanks for your advice. The property in question does not have any mortgage outstanding. But i struggle to see how they can take this income into consideration as it may end during the period of the mortgage (25 years).

You may die before the end of the mortgage, be made redundant, suffer an illness/ injury preventing you from ever working again etc. All of these are risks that the underwriter will be factoring into either deciding if to accept you or in the interest rate.

They should take into account your profits from the holiday let but they may be slight prudent on what weight they give it given the short duration you've held it, overseas risk elements etc

Thrugelmir

Bad_Ash wrote: »

But similarly people could be made redundant, etc. during the term of a mortgage.

Lenders can factor this into the equation. As applies to all borrowers that are in employment. A let property is unique and therefore impossible to quantify in risk terms.