Background properties owned by the applicant
Properties that are not rented out
The existing mortgage payment must be keyed as a credit commitment and will be included in the affordability calculation.
Where the property is unencumbered, the monthly payment & outstanding balance must be keyed as £1.
Existing property to be rented out
The mortgage payment must be keyed as a BTL credit commitment and the rent to be received keyed as 'Other Income' - 'Rental Income' (if rental property). If confirmation is required we would request a letter from the letting agent confirming the expected rental income.
Other Buy-to-Let mortgaged properties owned
The total of the mortgage payments must be keyed as a credit commitment and the total rent received keyed as ‘Other Income’ – ‘Rental Income’. If confirmation is required we would request one of the following:
- A letter from the letting agent confirming the rental income.
- Latest 3 months’ consecutive bank statements showing rental income.
- Copy of the current Tenancy Agreement.
- Letter from accountant or solicitor.
In order for background BTL properties to be coonsidered self funding the total rental income is required to cover the higher of 145% of the mortgage interest at initial product pay rate OR 145% of the mortagge interest at a national rate of 5.5%. No surplus will be considered as additional income, and any deficit will be deducted as a commitment within the affordability calculation.