Rental income with no previous years tax return

K_S

For the benefit of others who may come across this thread and get confused -

If you have a rental property in the background and are looking to apply for a residential mortgage, you'll usually fall into one of the following buckets -

Scenario 1 - You are able to afford (as per lender calculators) the residential mortgage based on your day job (employed or self-employed). Your main concern is to make sure that the background rental properties don't adversely affect your residential mortgage.

In this scenario, as long as the rental income (evidenced by bank statements, rental agreement, etc. depending on the lender) comfortably covers the BTL mortgage payment, most lenders will ignore it as a commitment and it should have no adverse impact on how much you can borrow. 

Scenario 2 - You are not able to afford the residential mortgage based on your day job and need the rental income to be considered to boost your borrowing power. Your main concern here is to find a lender that will take your rental income into account to help you borrow what you need.

In this scenario, most lenders will require you to evidence a track record of property income through SA302s. If the rental acquisitions are recent, some lenders will go by other evidence subject to a minimum x months track record. A couple will even consider future rental income (eg: if you're doing a let to buy).

simon_or

Lol, I was confused too, I thought the OP needed the rent money to be taken as income.