We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

BTL mortgage question

Options
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

Comments

  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Yes of course it will, as its a debt.
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
  • 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.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.