Rental income

Where income from property represents an applicant’s primary source of income (i.e., where 50% or more of overall income is derived from rental properties) this will be treated as self-employed. Please refer to the Income & Employment > Self employed & Packaging > Sole traders income pages for further guidance.

In cases where the Rental income makes up less than 50% of the customer's total income, we will include the income as long as it can be evidenced clearly by the latest 3 months bank statements.

Rental income is weighted at 83%.

We will require the following for each of the rental properties;

Address of property
Outstanding mortgage balance
Total annual rental income
Total annual mortgage repayment

<aside> 📢 Where there are other associated costs relating to the property(s), such as management fees, these must also be declared as a commitment or offset against the income.

</aside>

Holiday Lets

Refer to the Holiday Lets page

Let to Buy

In cases where the applicants are converting their current residential property to a ‘let to buy’, we will not include any future rental income into the affordability calculator.

We will however be required to confirm the property is self funding, where the BTL mortgage repayment is being excluded.

Documentation requirements:

BTL/LTB mortgage offer
AST or ARLA letter

<aside> 📢 We define self funding as: 125% of the mortgage repayment <= the rental income

</aside>