BTL mortgage question

cashbackproblems

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

foxy-stoat

Yes of course it will, as its a debt.

kingstreet

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.

cashbackproblems

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.