Halifax further advance (borrowing) affordability calculation

917700

Hi 

Just wondering how does Halifax calculate the affordability for further advance? 

I am self employed and I paid myself more dividends from my limited company this year. After 6 April, my 2 year average income figure will increase. 

Just wondering how does the Halifax calculate the affordability? I am planning to borrow more and buy a few BTL properties.

Thanks

K_S

@917700 The affordability calculations are done in a similar manner to the main mortgage, up to a maximum of 85% LTV.

917700

K_S said:

@917700 The affordability calculations are done in a similar manner to the main mortgage, up to a maximum of 85% LTV.

Thanks, that’s very helpful information. 

Do I need to have offer accepted on the BTL property prior to applying the further advance? 

Or can I borrow the money first, then start to look for BTL properties?

thanks

K_S

@917700 I'd have to run it past the lender to be sure but as investment is a permitted reason by Halifax for additional borrowing, I'd assume you can get it as cash and then look for a property.