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Rental income won't exist until I move out
Rygar
Posts: 30 Forumite
My plan is to rent out property I currently live in and get mortgage for a larger property with the rental income helping towards mortgage payments for the larger property that will become my new home.
Do lenders allow for such additional income when deciding how much to lend where there is no record/evidence of rental income yet? I can't generate any rental income to show lenders while I'm still living here! Current property is mortgage free, would providing evidence of this fact help?
Would be putting down 70/80k deposit and hopefully borrowing 230/240k on salary of 53k.
Do lenders allow for such additional income when deciding how much to lend where there is no record/evidence of rental income yet? I can't generate any rental income to show lenders while I'm still living here! Current property is mortgage free, would providing evidence of this fact help?
Would be putting down 70/80k deposit and hopefully borrowing 230/240k on salary of 53k.
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Comments
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Is the property you intend letting mortgage free?0
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No.
There is no evidence of the property being let out - you would need to show 1 years figures (via an SA302) to evidence the income.
Even then not all lenders accept income from BTLs.I am a Mortgage AdviserYou 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.0 -
.... Yes....Thrugelmir wrote: »Is the property you intend letting mortgage free?0 -
I thought this may be the case but plenty of people seem to do this. How do others get started? Also would it be considered btl? The mortgage would be for the property I intend to live in.No.
There is no evidence of the property being let out - you would need to show 1 years figures (via an SA302) to evidence the income.
Even then not all lenders accept income from BTLs.0 -
You can rent it out, you just cant use the income from it to increase your borrowing capacity.I am a Mortgage AdviserYou 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.0
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