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BTL mortgage question
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cashbackproblems
Posts: 1,826 Forumite
Hi
I am looking to buy a BTL next year, and also thinking of taking out a 10k interest free staff loan through my work, where repayments will be made over 18 months or so via salary deductions
This 10k will just be invested with the intention to be potentially used towards the property purchase next year. When applying for a BTL mortgage will this loan be taken into consideration? As I will be declaring my salary as x but my last 3 months payslips will have monthly deductions e.g. £500 so not match my salary. Will this loan be considered negatively?
thanks
I am looking to buy a BTL next year, and also thinking of taking out a 10k interest free staff loan through my work, where repayments will be made over 18 months or so via salary deductions
This 10k will just be invested with the intention to be potentially used towards the property purchase next year. When applying for a BTL mortgage will this loan be taken into consideration? As I will be declaring my salary as x but my last 3 months payslips will have monthly deductions e.g. £500 so not match my salary. Will this loan be considered negatively?
thanks
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Comments
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Yes of course it will, as its a debt.0
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Will you need personal income to justify the mortgage amount, or will the let "wash its own face" (ie rent will be at least 145% of mortgage interest assuming 5.5%pa)?
If the latter, the loan repayment may make less/little difference.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Will you need personal income to justify the mortgage amount, or will the let "wash its own face" (ie rent will be at least 145% of mortgage interest assuming 5.5%pa)?
If the latter, the loan repayment may make less/little difference.
Thanks. So my IO offer in principle is around 3% and repayments 150-200pm, with the rent being £700pm (£630 after agent fees). So no personal income will not be required even at 5% rate. Just thinking as its a staff loan it would be treated similar to student loan and not considered a biggie.0
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